Microsoft Corp. is establishing, in Shanghai, China, a center for research and development. The center will work on the company's MSN service. It will be Microsoft's first research and development center of this kind outside the U.S. Microsoft decided to take this step because of several setbacks that occurred in its online services working in China. One of the company's setbacks concerns the resignation of Luo Chuan, who was Microsoft's top executive responsible for the Chinese Windows Live unit. The company's new research and development center is to be established in Shanghai's Zizhu Science Park. At this location, where another giant, Intel Corp, already has its research office, Microsoft plans to develop Internet software.