US software giant Microsoft has started restructuring its Chinese mainland operations to tap the potential of its fastest growing market.

Microsoft China Co Ltd said Monday as part of the move, its deputy general manager and marketing director, Jimmy Chen, will leave his mainland post and return to the group's operations in China's Taiwan Province.

Meanwhile, the business will cut its marketing department in North China. "The adjustments (are being) made according to our long-term development in China and Microsoft's commitments to the market," said Tang Jun, president of Microsoft China.

He said the marketing department was being restructured according to the seven product lines designated in the United States, so the demands of Chinese customers can be fed back to the development team in the United States, helping develop solutions.

Microsoft China has divided its big clients along industry lines to provide more tailored solutions, it said.

Previously, Microsoft had singled out the Chinese market - including the mainland, Hong Kong and Taiwan - from its Asia-Pacific operation to give it the same status as the region.

"Already the fastest growing subsidiary of Microsoft, we expect China will be further expanded next fiscal year," Tang said.

He said the company will not cut staff during the restructuring, but start to recruit more people from the beginning of its new fiscal year in July.

The Microsoft Shanghai Global Technology Centre, which supports the software giant's customers worldwide, will also receive more investment.

Microsoft China will unveil its detailed restructuring plan in July and name seven directors in charge of the seven product lines.

Bill Gates, Microsoft's chairman and chief software architect, visited Beijing in February and signed an agreement with the Beijing municipal government to invest US$2.2 million to build a computer technology innovation laboratory to provide domestic computer and hardware makers with quality and hardware-software compatibility tests.

(by Liu Baijia)

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