Microsoft is expanding its presence in China via a strategic partnership with the Shanghai Media Group (SMG), an investment in a TV set manufacturer and a new R&D centre in Shanghai. The JV with SMG covers content production, IT and electronic products. Microsoft will provide technology for SMG’s new media divisions including IPTV, digital TV and mobile TV. “We are trying to promote the combination of technology and content through this cooperation and provide innovative application and service,” said Timothy Chen, chief executive officer of Microsoft China. Television maker Sichuan Changhong Electric Co said Microsoft will buy 94 million yuan (US$12.3 million) worth of new shares to tap China’s emerging digital electronic market. The two companies also signed a memorandum of understanding on a project called Media Galaxy, in which they will cooperate on R&D and production and sales of digital entertainment products that link television and computers to Internet.