Microsoft chief executive Bill Gates has continued laying the foundations of his company’s future in China. The software billionaire was in the Shenzhen special economic zone in Southern China yesterday to ink major software deals with the Chinese government and the People’s Bank of China (PBC) and talk to Shenzhen Communist party officials about piracy in the province.

China Telecom, the state economic trade commission and 40 government ministries will use Microsoft software such as NT, SQL7 and Exchange server to build an online infrastructure for government. Gates once again referred to this kind of software infrastructure as a digital nervous system. He told a crowd of Chinese officials, We will strengthen cooperation with all parties, including the Chinese government, to accelerate the development of the information industry, with the government setting an example of leadership through this project.

Also setting an example was the PBC, which signed a deal with Microsoft to license its software for use in PBC’s HQ and offices around the country. Redmond sees the deal as promoting the use of legal software and protecting its intellectual property rights. It will provide training and help with Y2K issues to the bank. Gates also signed a deal with party officials in Shenzhen, with the municipal government pledging cooperation in promoting the use of legal software in the province.