No.358 January 23, 2009

Special Issues  
  USITO Work Group Kick Off Meetings

 

Happy Chinese New Year
(There will be no USITO weekly during China's statutory holiday 1/26-1/31)
 

In the week of January 19, USITO held two kick-off meetings for the policy work groups of Trade & Investment, and Standards & Conformity Assessment. During the meetings, the Co-Chairs discussed with members to develop 2009 strategic plans, and set policy priorities and actionable items for the new year. The meeting for the Environmental & Energy Efficiency Working Group will be held shortly after the Chinese New Year leave. Please contact jimmy@usitomail.org for the meeting details.

Top Stories: USITO Issue Paper on the 16 Special Projects

USITO Issue Paper No.628: China's 16 Special Projects

USITO/SIA Joint Report
China's 16 High-Tech Special Projects
¨C Analysis on China 's Hi-Tech Policy Development and the Prior National Programs in the Next 15 Years
January 23, 2009

Chinese government policies have played the decisive role in promoting China's hi-tech industries from scratch to world important forces. The country adopts mission-oriented approaches in formulating hi-tech policies, such as the 863 & 973 programs. The 16 special projects as China's latest hi-tech policy focus are the national top guidance to foster the country's key industries with the aim to build an innovative economy.

USITO Notes: The tenet of the special projects drive is to foster an eco-system for R&D activities and industrialization, own IPR for important technologies, and divert from the heavily manufacturing-oriented economy. The overarching goal is to grow the country's innovative capabilities and core competitiveness. SIA (Semiconductor Industry Association) and USITO have since 2007 been following the development of this new hi-tech policy direction. Members please click here to download the report.


MIIT Clarifies 3G Frequency to Carriers

Early this week the Ministry of Industry and Information Technology (MIIT) announced the allocation of frequency ranges for the three 3G carriers.

China Mobile obtains 1880-1900Mhz and 2010-2025MHz for TD-SCDMA, which is based of TDD mode. China Telecom obtains 1920-1935Mhz and 2110-2125MHz for CDMA2000, China Unicom obtains 1940-1955MHz and 2130-2145MHz for WCDMA.

MIIT official said in an interview that the allocation of 3G frequency resources was based on the current actual requirement of 3G business. Carriers are allowed to apply for more resources when they expand their business.

According to the plan, China Telecom gives up 1880-1900MHz, used previously for its quasi mobile PHS service, to China Mobile for TD use. Sources said the re-allocation of the frequency ranges would need further coordination between the carriers before they are finally utilized.

USITO Notes: The government showed support for the homegrown standard in frequency resources. By comparison, China Mobile got 35 MHz for its TD, and the other two each got 30 MHz for the other standards. China first allocated 3G frequencies as early as 2003 when it initially reserved 155MHz spectrum for TD, and 2X60MHz for FDD.

In western countries, it is a common practice for the government to auction 3G frequency resources, which are generally priced at billions of dollars for each bid. The Chinese way appears a bit unique, as the government has never planned to give out the frequencies through public auction, and maintained strong control over the industry. Under the mechanism, carriers will be less burdened for the operational costs, and they only need to pay utilization fees.


CNNIC: China Internet Industry to Have Explosive Growth


According to a lastest report by the China Internet Network Information Center (CNNIC), with issuance of 3G license, China's internet industry is expected to encounter an explosive growth. Highlights in the report include: growing commercial values, rural area internet popularity growth, terminal diversification, etc. The report also compares China's Internet sector with the leading world markets, and provides some illustration graphs. Members please click here for the full report.

China to roll out stimulus packages for 9 industries by early March

China will release stimulus packages for nine industries in succession before the opening of the annual sessions of the National People¡¯s Congress and the Chinese People¡¯s Political Consultative Conference which are usually held in March, said an MIIT official.

Total 3G investment to reach 170b

MIIT said on January 22 that in 2009 the total investment in 3G construction is expected to be RMB 170 billion, 120b of which has been already initiated or planned recently. Detail

Selected Chinese Media Reports


Vice MIIT Minister Calls for Increased TD Deployment Efforts

On January 15, Xi Guohua, Vice MIIT Minister, showed up at China Mobile's 2009 Work Conference and made a speech. He said China has entered critical stage in the development of TD, which requires higher confidence and more elaborate measures to accelerate the TD deployment. He promised that MIIT will increase support to China Mobile in constructing and operating TD network. Chinese Text

China Unicom Kicks Off Bidding Procedures for WCDMA Wireless Products

China Unicom Chairman Chang Xiaobing said that China Unicom will start bidding process for WCDMA equipment in January, and network construction will commence in February. Sources revealed that a number of vendors submitted commercial bids last Saturday. It is said that Ericsson, Nokia-Siemens, Alcatel-Lucent, Huawei and ZTE all participated in the bidding process. Chinese Text

China Unicom Launches WCDMA Bidding Procedures

China Unicom has kicked off bidding procedures for its WCDMA network project. Eight vendors including Ericsson, Shanghai Bell, Huawei and ZTE have submitted bids in the first round. The proposed high-profile WCDMA network is the global largest WCDMA network so far. The equipment to be purchased will be for construction of WCDMA network in 55 cities, including all the provincial capital cities, cities specifically designated in the state plan, and some developed cities. Chinese Text

Dixintong Plans to Buy 100,000 3G Handsets

Sources said Dixintong, a Chinese mobile phone franchise, plans to purchase 100,000 3G handset units. This is the first purchase of 3G handsets in 2009. Qi Feng, Vide President of Dixintong Group, said that Dixintong has invited bids from foreign and Chinese handset vendors, and the purchase will be finalized after the Spring Festival holidays. Chinese Text

MIIT: 3G Investments Hit RMB 170b in 2009

The Ministry of Industry and Information Technology said on January 22 that the 3G investment in 2009 is expected to hit RMB170b. According to the 3G network construction plans of three telecom carriers, the total investments for 3G construction will reach about RMB 400b in the next three years, and 3G network will extend to all the cities at prefecture level, and most of county seats and developed towns in China. Chinese Text


U.S. Deregulates High-tech Exports to China

On January 14, the U.S. Department of Commerce (DOC) announced the adjustment to U.S. high-tech exports control against China . According to the new policy, DOC will begin issuing licenses to Chinese civil enterprises for importing U.S. high-tech products, instead of the current case-by-case censorship on high-tech exports to China . Mario Mancuso, Undersecretary of DOC, commented this move marks a milestone. Chinese Text

Chinese Premier: Foreign Experts Encouraged to Start Business in China

China's Premier Wen Jiabao met with representatives of foreign experts and their families at the Great Hall of the People on January 20. Wen highlighted the necessity of introducing large numbers of talents with expertises. He said, we welcome more foreign experts to come to China to start business and seek development opportunities. Chinese Text

Compass Navigation Satellite System to Cover the Globe in 2015

According to an official of China Aerospace Science and Technology Corporation, the company will launch about 10 navigation satellites this year and in the next year. China Aerospace Science and Technology Corporation plans to build a global navigation and positioning system in 2015, and the system will consist of more than thirty satellites. Chinese Text

Prices of Computers for Farmers Published

The ¡°Home Appliances to Rural Areas¡± program will be implemented across China on Febuary 1, and computer, air conditioner, heater and motorcycle have been on the list of such home appliances. Sources said that the computer price is no more than RMB 3000 for desktop, and no more than RMB 4500 for laptop, the most expensive of all the home appliances to be sold to farmers. Chinese Text

 


Two Multinational Technologies Adopted

Sources from Zhejiang University told the media that two technologies developed by a Zhejiang University team led by Professor Chen Yulu have been incorporated into an international standard for digital video-audio coding technology, and become core technologies of the standard. This marks the conclusion of the long-term monopoly enjoyed by foreign giants and research institutes over international multimedia communication standards. Chinese Text

Software Industry Faces Challenges

A survey showed that nearly 70% of Chinese software developers are less competitive compared with foreign rivals. Some experts pointed out that despite economic downturn and subsequent decreased consumption capabilities, China 's software industry have still growth opportunities. Experts called for increased regulatory efforts for encouraging indigenous innovation and the R&D of proprietary core technologies, especially core technologies for software development and application software development platform. Chinese Text


Chinese Mainland TV Makers Buy Taiwan Panels at USD2.19b

Nine Chinese mainland-based TV giants have signed contracts of intent with two Taiwan-based panel makers, AUO and Chi Mei, for buying liquid crystal panel valued at USD2.19b. This purchase size this year will exceed 12 million panels, an increase of 59% over last year. These nine TV giants include Hisense, Konka, TCL, Skyworth, Changhong, and Hai'er. Chinese Text

IBM Acquires Changhong Stakes

Sichuan Changhong Electronic Co,.Ltd., a Shanghai-listed company, announced on January 17 that IBM China, by means of bulk transaction, acquired 29.67 million shares of Changhong Electronic assigned by Sichuan Changhong Electronic Group Co., Ltd, its parent company and also the largest stakeholder, and therefore has become the second largest shareholder. Changhong Group explained that the purpose of assigning above stakes is to optimize the composition of stakeholders, and introduce strategic investors. Chinese Text

Alibaba Plans Global Expansion

Alibaba Chairman Ma Yun said his company is planning to seize the opportunity of the global financial crisis to expand its business globally, instead of concentrating on China 's E-commerce market alone. In an interview, Ma Yun said, ¡°Before the financial crisis occurred, we were just working on introducing Chinese products to foreign markets. Now what we want is to provide aids to small and medium enterprises in other parts of the world. ¡± Chinese Text

E-gambling Case Heard in Shanghai

Shanghai 's largest gambling case with stakes totaling over RMB 6.6b in the past two years via overseas gambling websites was heard in Shanghai on January 18. Twenty gamblers were sued, and some may be sentenced to up to 10 years' imprisonment by the Criminal Law. Chinese Text

New Regulations Ban Dissemination of Personal Privacy

The Regulations on Security Protection of Computer Information System in Xuzhou was approved by the Standing Committee of the 11th Peoples Congress of Jiangsu Province on January 18. The Regulations contain detailed provisions on multi-level security management of computer, protective measures, prohibited actions, and legal responsibilities. Under the Regulations, ¡°Human Power Search¡± is an action that should be prohibited. Chinese Text

Analysys: China 's Search Market to Hit RMB 9.2b in 2009

Analysys published a study report on China's search engine market development trends 2008-2011 on January 19, predicting that China's search engine market will hit RMB 9.2b in 2009, up 39% over 2008. Of which, the market size of search engine operators will reach RMB 7.2b. According to Analysys, the rapid growth is attribued to the development of small and medium enterprises and increasing application of Internet. Chinese Text

726 Violating Websites Closed Down

In a nationwide campaign launched recently against websites posting and spreading pornographic and obscene contents, competent authorities are strengthening enforcement efforts. Sources from the authorities told the media that as of January 19, a total of 726 websites were closed down for violating relevant regulations. 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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