Windows 10's China launch taps local firm clout, brainpower

More than 600,000 Chinese insiders, or around 12 percent of the world' s total, have been helping Microsoft to modify the new Windows into Wednesday's final product.

Shum said Chinese participants of the program also advised Microsoft on how to readjust the operating system for the unique needs of Chinese users.

"China's huge user base is generating a lot of demands that are being met by a growing legion of world-class, but home-grown software developers," Shum said. "The participants' contribution to Windows 10 tells us that their work doesn't have to stay just in China, they should be recognized globally."

For the Chinese version of Windows 10, Microsoft has readapted its intelligent personal assistant Cortana with local content. The new OS also comes with a similar service currently only available in China called "XiaoIce", which Microsoft says already has 37 million users in the country. The developers based in Microsoft's Beijing R&D headquarter is also working with engineers in Tokyo to develop a Japanese version.

"Chinese software developers deserve the global spotlight and I think someday the BUILD conference (for developers) should be hosted in China too."

Microsoft has also been trying to cultivate closer relationship with a wide range of partners in China as part of what Shum call the expansion of Windows ecosystem in China.

In March, the company moved its WinHEC conference for hardware makers to the southern Chinese city Shenzhen. According to Shum, the company is also expanding its ecosystem in Beijing to include a growing software developer community.

Microsoft has also been running an incubator in China to nurture promising start-ups and is seeking to become a part of China's grand plan to use the Internet to revolutionize industrial manufacturing through cloud computing and IoT.

In such cases, many of Microsoft's partners that help it promote operating systems have become its potential rivals. Domestic Internet giants like Tencent, Alibaba and many others are scrambling for a foothold in data analytics and cloud computing.

"We understand we will venture into these business with competition from Chinese firms but with that we also see great businesses opportunities and we certainly don't want to miss out the rise of mobile Internet and IoT in China," Shum said.