Linux system developer TurboLinux, formerly known as Pacific HiTech, has struck bundling agreements with top Chinese desktop PC makers Great Wall Computer and TCL Computer, and server manufacturer Lang Chao.

San Francisco, California-based software developer TurboLinux is the leading provider in Asia of the Linux open source computer operating system, and aims to make Linux the Windows of China according to vice president Lonn Johnston.

The most important issue in expanding PC sales in China is price, said TCL vice president Rong Qin, we chose TurboLinux to make low-priced computers available to the average family. TurboLinux released its latest Chinese version of Linux in August this year with a list price of 399 yuan ($48.25) for the top of the line Release 4.0 version, and 88 yuan (US$10.64) for a pared down version. This compares to about 2,000 yuan ($242) for Windows ’98.

China’s top circulating newspaper, the People’s Daily has given its endorsement to TurboLinux 4.0 as the Linux system in China with the best localization while a web survey found 47% of users choosing TurboLinux, 25% choosing Blue Point and only 7% going for the locally-developed Red Flag. Although its only started operating in China last March, TurboLinux was the first Linux software supplier to make the jump to China, and has managed to recruit Chinese Linux developers who have successfully rolled out the only fully localized Chinese Linux OS, according to Johnston.

Great Wall, which is already shipping thousands of PCs with TurboLinux 4.0 bundled in, took on Microsoft earlier this year when it became the first Chinese computer company to ship PCs not pre-loaded with a Microsoft OS despite its bundling agreements with the US giant. TCL followed suit shortly thereafter.

By pre-loading TurboLinux the companies say they can still keep the price right down, which was the reason for offering the Windows-free computers, while providing buyers with a built-in operating system.