Microsoft Corp has recruited Chinese PC manufacturer Legend Holdings Ltd to develop a Windows CE based handheld computer for the Chinese market. This puts it ahead of 3Com Corp, which is due to release native Asian versions of its PalmPilot handheld later this year. The Windows CE device will be similar to the western versions produced by the likes of Casio Computer Ltd and Philips electronics NV for sale in North America and Europe. China is one of the few countries in the Asia pacific market that has not seen falling sales of PCs in the second quarter of the year. Chinese shipments rose 28% to 1 million units, in the second quarter of this year.