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Internationalization, Localization, and Unicode : Unicode Character Encoding : Unicode Support in .NET
 

Unicode Support in .NET

Internally, .NET applications use UTF-16 Unicode encoding for string data. When fetching data, the ADO.NET Client automatically performs the conversion from the character encoding used by the database to UTF-16. Similarly, when inserting or updating data in the database, the driver automatically converts UTF-16 encoding to the character encoding used by the database.