Search giant Google earlier in the day had announced its new R&D Center in China, slated to open during the third quarter, and that Kai-Fu Lee, who founded Microsoft Research China in the late 1990s, would be its president.

Microsoft is suing both Google and Lee for breaching Microsoft’s employee confidentiality and non-compete agreement.

Lee has direct knowledge of Microsoft’s trade secrets concerning search technologies and China business strategies, said Microsoft in a written statement sent via e-mail. He has accepted a position focused on the same set of technologies and strategies for a direct competitor in egregious violation of his explicit contractual obligations.

Google’s Chinese-based outfit would develop new products for users in China and elsewhere, the Mountain View, California-based company said.

Under the leadership of Dr Lee, with his proven track record of innovation and his passion for technology and research, the Google China R&D center will enable us to develop more innovative products and technologies for millions of users in China and around the world, said Google engineering VP Alan Eustace, in a statement.

Google also has engineering offices in Japan, Switzerland and India.