Chinese President Xi Jinping (R) talks with Microsoft CEO Satya Nadella during a tour of Microsoft's main campus in Redmond, Washington September 23, 2015. REUTERS/Ted S. Warren/Pool Microsoft is working with the Chinese government to make a custom version of Windows 10, according to a blog post.

The software will be used by government officials and state-owned enterprises in fields such as energy, telecommunications, and transportation.

Microsoft is creating a new company, named C&M Information Technologies, which will be based in Beijing. The company will act as an exclusive licensor for Windows to the Chinese government, provide software support, and collect feedback.

Microsoft makes it clear that the company retains the ownership of Windows 10 and is just working with the Chinese government to deal with its specific needs.

China is a massive PC market and Microsoft has struck a series of deals to enter the country. The company says it has deals with Tencent, one of the most popular social networks in China, Lenovo, the world's largest PC maker, and Qihoo 360, a leading Chinese internet security company.

Software piracy is a major problem in China. According to research, around 74% of all software used in China is pirated. To combat this, Microsoft has made the upgrade path to Windows 10 easy for pirates, offering it for free.

The deal is subject to regulatory approval in the country.