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USITO Weekly Newsletter 12/4/2009
2010-01-09

 
 

No.401 December 4, 2009

Special Issues  
 
USITO 2009 Year-End Appreciation Reception, Dec.17
- MEMBER ONLY -
 
USITO Policy Call Meeting Notes Dec.3 Thursday
Members Click Here
 

Please mark your calendars to join us in a very special evening of appreciation with our friends in Chinese government, partner organizations as well as our loyal members. We look forward to enjoy a fun evening with you at the end of the busy and productive year of 2009. We have prepared a special menu, drink selection, seasonal music and the exciting “lucky draw” program! Click here for the notice
*** This is a member only event ***

Top Story

China Cleans Up Mobile Pornography Content

Since mid-November, Chinese ICT authorities have been taking a number of measures to clean up the mobile phone contents, especially pornography. Those measures mainly include:

1. The Office Against Pornographic and Illegal Publications (OAPIP) has prioritized the "Anti- mobile porn content" work as its key task in the following months. On Nov 16, OAPIP announced a crackdown on the creation and distribution of lewd materials, which focused on Shanghai, Beijing, Guangzhou, Zhejiang, where many WAP sites are registered.
2. The Ministry of Industry and Information Technology (MIIT) on November 26 called for overhaul of mobile web sites nationwide. Mr. Su Jinsheng, Chief Engineer of MIIT told the press that MIIT will work with the mobile carriers for the overhaul. Within a month or so, the ministry has shut down thousands of illicit Web sites that publicize porn content and arrested dozens in a campaign against online pornography that is now increasingly shifting focus to mobile Web sites. The ministry has also requested mobile providers sign information safety management contracts, under which operators were liable to cut any link with lewd materials.
3. China Mobile has frozen contracts with its mobile Internet partners, and announced to stop collecting fees for its online partners. The company’s music business unit has also temporarily suspended cooperation with 256 Internet retailers. Its CEO Wang Jianzhou said on Nov.30 that all service providers (SP) will be required to guarantee that their services are free from porn and are not commercially related to any pornographic websites for mobile phones, if they still want to cooperate with China Mobile.
4. The other two mobile carriers, China Telecom and China Unicom, are also reported to adopt measures to pornography through mobile phones. Some Chinese ministry-level government departments have also launched a joint crackdown on pornography on mobile service. Source: tech.sina.com.cn Nov., 2009, edited by USITO

USITO Notes: Porn contents were the most profitable business for many of Chinese WAP (Wireless Application Protocol) portals, and for so long the mobile carriers seemed comfortable with those stuff. As a matter of fact, the carriers saw no reason to block them: the porn sites generated more mobile data traffic and carriers got a substantive share from the revenues. Especially with the 3G hype going on, there is a growing lack of ‘killer applications’ for data services as the three carriers compete head to head. So no one was willing to take the initiative to fight mobile phone contents, which has made porn websites so rampant in China.

The situation does appear serious: in a sina.com survey on a few hundred Chinese middle school students last month, 74% had mobile phones and 60% had ever visited porn WAP sites. This kind of survey was reflected by agencies like OAPIP to the politburo leaders, who were consequently "unhappy" and summoned industry officials for explanations. It is said that MIIT has relayed the pressure to mobile carriers, which explained why so many WAP sites were closed and a number of overhaul measures were publicized recently.

It is noteworthy that the “mobile phone Green Dam” may soon take shape. Analysts said that the senior officials have taken due lessons from the "failure" to enforcing Green Dam Internet filtering software, and will be more “cautious” in promoting a similar software in mobile phones. It is widely known that a key reason to "indefinitely postpone" Green Dam is the outcries from Chinese netizens. With heavy media coverage condemning mobile porn, the authorities may find their job easier when promoting mobile green or red dams.


State Council Announces Targets on Emission Cuts

According to China's official Xinhua News Agency report, the State Council of China announced on November 26, 2009 that China is going to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005. Official press release said the goal is "a voluntary action" taken by the Chinese government "based on our own national conditions" and "is a major contribution to the global effort in tackling climate change".

The official media said that the index of carbon dioxide emissions cuts, announced for the first time by China, would be "a binding goal" to be incorporated into China's medium and long-term national social and economic development plans. New measures would be formulated to audit, monitor and assess its implementation.

A Chinese official told the media that in 2020, the country's GDP will at least double that of now, so will the emissions of greenhouse gases (GHG). But the required reduction of emissions intensity by 40 to 45 percent in 2020 compared with the level of 2005 means the emissions of GHG in 2020 has to be roughly the same as emissions now.

The government would devote major efforts to developing renewable and nuclear energies to ensure the consumption of non-fossil-fuel power accounted for 15 percent of the country's total primary energy consumption by 2020, said the State Council, and as a responsible developing nation, China advocated global concerted efforts in addressing climate change "through pragmatic and effective international cooperation." Detail

Member in the News: AMD: China to be its largest single market by 2012

Global innovative technology leader AMD said on Dec.2 that China could become the company's largest single market within the next two years, boosted by the country's booming rural market and increasing demand for notebooks.

The observation came from AMD President & CEO Dirk Meyer, whose company now stands as the world's 2nd largest chipmaker. "There are speculations that China will become the world's largest PC market by 2012, but for us, China could become our largest market sooner than that, as we have a higher market share," he said. Detail

Knowledge Center: China's Printer Market

China's printer industry market in 2008 is featured by three big markets: government, finance and education which account for 10.4%, 8.2% and 5.8% of the total market share respectively. Members click here to download
(Disclaimer: The report is provided by 3rd party research firms for our members preview. )

Selected Chinese Media Reports
 

Regulations

MIIT Regulates EIP Service Life

The Ministry of Industry and Information Technology has issued the General Guidelines for Environment-friendly Service Life of Electronic Information Products, which are intended to help enterprises determine the environment-friendly service life of their products. In case products beyond their stated service life are used or imported, producers or importers will have to bear consequences arising therefrom. This is said to effectively reduce the generation of e-waste in China. According to a survey conducted by a group under China Council for Co-operation on Environment and Development, at least 70% of e-waste in the world has entered China. For this reason, MIIT released the General Guidelines, which can be implemented in conjunction with the Requirements for Pollution Control Marks of Electronic Information Products to guide enterprises in fixing the environmental service life of products more scientifically and reasonably. Chinese Text

Trade & Investment

Heavy Losses Due to Technical Barrier to Trade

A report on global trade friction released by the Ministry of Commerce on December 1 pointed out China has become the number one subject of trade investigations globally for consecutive 14 years, and technical barrier to trade will become the main reason hindering the export of Chinese products, leading to a direct trade loss of over USD50.5b (RMB340b) for Chinese enterprises last year. This report was published by MOC at the fifth China High-level Symposium on Trade Relief and Industry Security held on December 1. According to Yang Yi, Director-general of Bureau of Industry Injury Investigation, as of Oct. 28, a total of 101 trade relief investigation cases against China have taken place, involving more than USD 11.6b. Last year over one third of Chinese export enterprises suffered more of less from the technical trade measures of foreign countries. Wang Chao, Assistant Minister of MOC, MOC is considering more trade relief measures to respond to this situation. Chinese Text

China Exports Proprietary Servers for the First Time

The TS10000 high performance servers developed by Inspur Group have been exported to Saudi Arabia recently, and this means China’s proprietary servers are exported for the first time, and in a position to compete with server products from European and American countries. Sources said that this exporting of China’s servers is based on successful application of Inspur high performance servers in China’s bioscience field, and that is why Saudi Arabia, regardless of the practices of procuring servers developed by European and American makers, introduced Inspur’ s TS10000 high performance servers for gene research for date palms, with a view to improving its competitiveness in farm products gene research. For a long time, IT enterprises in European and American countries have maintained their monopoly over the global server market with their core technologies in server products. The first server developed by Inspur Group in 1993 smashed up the monopoly of foreign brands over Chinese market. Inspur Group is maintaining a lead position in software and hardware, and its servers and storage and software business stay ahead of similar domestic proprietary brands in market shares. Chinese Text

3G Mobile Communications

China Telecom to Advance CDMA Core Chip Localization

Sources from China Telecom Group said that China Telecom signed a strategic cooperation agreement with China Electronics Technology Group Corporation on December 2, and both parties will work together to accelerate the localization and technical evolution of core chips for CDMA terminals. Currently, Qualcomm is maintaining its overall monopoly of over 1400 patents in the CDMA field, covering almost the whole industry chain, and the technical monopoly leads to an exorbitant cost of CDMA terminals compared with GSM terminals. The partnership of China Telecom as the CDMA operator in China with China Electronics Technology Group may produce significant influence on China’s CDMA industry. Chinese Text

497 3G Terminal Licenses Approved

As of November 20, 497 licenses have been granted for network connection by 3G terminals, that means 497 3G terminal types have passed the network connection testing, according to news release by the Ministry of Industry and Information Technology. Of which, 218 are TD terminals, including handsets (101), data cards (94) and fixed wireless terminals (23), 145 are CDMA 2000 terminals and 134 are WCDMA terminals. Chinese Text

SARFT, Cisco Set up NGB Joint Lab

On December 2, SARFT Academy of Broadcasting Planning and Cisco signed a deal to jointly set up a joint lab of NGB (Next generation broadcasting network), which will start operation in first half of 2010. Wang Xiaojie, Director-general of Department of Science and Technology, SARFT, spoke highly of the partnership with Cisco in his speech at the singing ceremony, saying that the joint lab will play active roles in promoting the development of NGB. According to the requirements of SARFT and the Ministry of Science and Technology, the NGB network should be a broadband two-way and controllable network featuring full coverage and interconnection and intercommunication. The construction of NGB network has begun in different parts of China. Now the NGB operators in the Yangtze River Delta, the Pearl River Delta and the mid- and west regions are working on NGB deployment and will build NGB pilot regions in the next 1-3 years to accelerate the 3C convergence. SARFT plans to build a next generation broadcasting network integrating wired communication with wireless and featuring nationwide coverage in the next 10 years. Chinese Text

Semiconductor

Vimicro Founder Elected CAE Member

ChineseAcademy of Engineering (CAE) announced on December 2 an addition of 48 new members to CAE in 2009. John Deng, Vimicro’s founder serving now as Vimicro Chairman and CEO, was elected member of the Division of Information and Electronic Engineering. In 2005, Vimicro became the first Chinese chip maker with own intellectual property which was Nasdaq listed, controlling 60% of the market for image processing chips for computers. Its chip products are widely used by Samsung, Philips, HP and Lenovo in computers, broadband, mobile communication and e-appliances. The CAE member is the supreme academic title in engineering science in China, and is a life-long honor. Chinese Text

China to Establish IOT Alliance

On December 2, a preparatory working group of the Sensor Network (Internet of Things) Technology & Industry Alliance was established by CAS Shanghai Institute of Microsystems and Information Technology and other domestic organizations in Beijing. According to sponsors of the preparatory meeting, the sensor network (Internet of things) technology is rated by the international industries as the top of the ten technologies which are expected to change the world in the future. Currently, China’s R&D of wireless sensor network technology and applications is on an equal footing with foreign advanced countries, and has acquired advantaged position in some sectors. In such context, CAS and other domestic key enterprises sponsored this meeting hoping to pool relative R&D resources to work jointly on this field as soon as possible. Sources said this alliance will be a technology & industry alliance under which enterprises will play key roles, the government issues preferential policies, research institutes and universities will participate in R&D driven by the needs of users. The alliance will, under the guidance of MIIT, work to promote the development of the sensor network (Internet of things) technology and industry through advancing the R&D, manufacturing, promotion and application of the sensor network industry chain and related products. Chinese Text

Software

CCSE 2009 Held in Shenzhen

The 5th China Conference on Software Engineering (CCSE 2009) was held by CSAI Advisory Team in Shenzhen on November 28, 2009. With a theme of “Sharing, Improvement and Innovation”, this conference set up three forums: CMMI Forum, Software R&D and Project Management Forum and Enterprise IT Application and Talent Training Forum, and over 20 foreign and domestic experts gave over 10 speeches. During the conference, CSAI signed an AEP partnership plan with U.S. QAI, and both parties held a press conference, vowing to advance the establishment of China’s software specialist qualification certification system. Chinese Text 

Microsoft Assists Cities with Anti-Piracy Enforcement

On December 3, Microsoft China announced a series of anti-piracy actions it took in China in the past month. Microsoft assisted enforcement departments in Beijing, Shanghai, Xi’an, Chengdu, Chongqing and Taiyuan to take a series of anti-piracy actions last month, and seized large numbers of pirated software. Also, Microsoft China took a civil action against two vendors suspected of pre-installing and selling pirated software. In addition, Microsoft improved the activation flow in its latest Windows 7 with a view to preventing the infringement of consumer rights and interests by pirated software. Microsoft also strengthened its efforts to help educate Chinese youth and minors on intellectual property protection. Chinese Text

Internet

Multi-level Management to Be Practiced for Online Games

Sources said the competent online games authorities are planning to exercise multi-level management over the online games industry. This news was disclosed by officials attending a meeting for the Internet industry. According to such officials, tight management will be exercised for the Internet industry, and strict measures will be taken against violative, violent and porn online games. For this reason, a multi-level management system will be established by the range of ages. Chinese Text

 

USITO selected and translated the news summaries above. If you are interested in learning more details about the above Chinese language links, you are welcome to contact us (wenjie@usito.org) to sponsor the translation of that report.

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Standards & Conformity Assessment
Telecom Law Update
H.S. Code
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Trade & Investment
Green Dam Software
Piracy Legislation
Anti Trust
Stimulus Plan
Government procurement
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