I met a local Chinese guy in Beijing several years ago who knew the Red Flag people. Based on what he told me, it sounded like Red Flag positioned themselves as the official Linux of China, which meant they would be specified and required by Chinese government agencies and state-owned enterprises. Red Flag then told the Chinese government that to make Red Flag Linux successful, they would need government funding. With a nascent team, simple product, and this funding in hand, they they went to the big players in the PC and server ecosystems (Intel, etc.) and said that if those companies wanted their hardware sold in China, it would need Red Flag Linux, and Red Flag could provide consulting services to make sure Red Flag Linux ran well on their hardware.
According to the guy I talked to, the Red Flag management team then embezzled most all of the money from the government and US, Japanese, and European companies and left an understaffed team of developers to deliver on the contracts with the foreign companies.
Another Chinese friend said years ago that many Chinese tech entrepreneurs were "just making money off the investors." It didn't make sense to me until I heard the Red Flag story.
Embezzling from the Party would seem to be a career-limiting move, no? There must be more to it. As in, the Party or power members thereof must have been in on it.
According to the guy I talked to, the Red Flag management team then embezzled most all of the money from the government and US, Japanese, and European companies and left an understaffed team of developers to deliver on the contracts with the foreign companies.
Another Chinese friend said years ago that many Chinese tech entrepreneurs were "just making money off the investors." It didn't make sense to me until I heard the Red Flag story.