The China (Shanghai) Pilot Free trade Zone to be launched at the end of this month will be lifting a 13 year ban on game console sales in the zone that is expected to benefit IR LED manufacturers. Internet restrictions will also be lifted within the zone. The zone approved in August by the Chinese government was established to attract foreign investments.

Microsoft and Chinese entertainment company BestTV will be partnering up to launch “Shanghai Best communications and technology Inc.” BestTV will own 51% stock share of the company set up through joint venture, while Microsoft will claim 49% ownership. The joint venture is expected to enable Microsoft to successfully introduce the Xbox into the Chinese market.

If Microsoft enters the Chinese market, manufacturers in related accessories will surely benefit, for instance hardware and software manufacturers. Suppliers of IR LED for Xbox Leap Motion include Wuhan Guide Infrared Co. and body sensor equipment manufacturer Jiangxi Lianchuang Optoelectronic Science & Technology Co. Ltd.