Chinese　software　companies　are　increasingly　using　open　source　software　(OSS)　components　in　software　development.　Development　with　OSS　components　faces　challenges　with　respect　to　component　selection,　component　integration,　licensing　compliance,　and　system　maintenance.　Although　these　issues　have　been　investigated　in　the　industry　in　other　countries,　few　similar　studies　have　been　performed　in　China.　It　is　therefore　difficult　for　Chinese　software　companies　to　be　aware　of　their　special　issues　and　to　make　the　necessary　improvements.　This　article　describes　a　questionnaire-based　survey　of　software　development　with　OSS　components　in　Chinese　software　companies.　Data　from　47　completed　development　projects　in　43　companies　were　collected.　The　results　show　that　the　main　motivation　behind　using　OSS　components　was　their　modifiability　and　low　license　cost.　Using　a　web　search　engine　was　the　most　common　method　of　locating　OSS　components.　Local　acquaintance　and　compliance　requirements　were　the　major　decisive　factors　in　choosing　a　suitable　component.　To　avoid　legal　exposure,　the　common　strategy　was　to　use　components　without　licensing　constraints.　The　major　cost　of　OSS-based　projects　was　the　cost　to　learn　and　understand　OSS　components.　Almost　84%　of　the　components　needed　bug　fixing　or　other　changes　to　the　code.　However,　close　participation　with　the　OSS　community　was　rare.　Copyright　©2008　John　Wiley　&　Sons,　Ltd.