No.360 Februray 13, 2009
Special Issues  
  China International Software & Information Service Fair
 
U.S. Embassy Visa SAO Survey
 

USITO has been invited by the Ministry of Commerce (MOFCOM) and the U.S. Embassy to support the China International Software & Information Service Fair, held on June 17-2 in Dalian City of Liaoning Province. As China's top annual software expo, the Fair will be a great platform for exhibitions and forums for information exchange. USITO Members please contact juliaz@usitomail.org or wei.huang@mail.doc.gov for more details.

Top Stories: 15 TD-supporting measures

MIIT to Formulate Stimulus Plan for the Information Industry

According to a 2/11/2009 report in the Southern Metropolitan Daily, China's Ministry of Industry and Information Technology (MIIT) has been intensely working on a series of new plans to boost China 's electronics and information industry. At the current stage, the ministry is soliciting opinions from the industry for further revision, and will soon submit the draft plans to the State Council for approval.

Experts said that MIIT's new stimulus package will cover three industries as well as six projects. The three industries are: electronics, telecommunications and Internet; and the six projects are respectively for integrated circuit, flat panel display, TD-SCDMA, digital TV, computer and next generation Internet, software and information service. MIIT officials stated to the media that the goal of the package is to accelerate the integration process of information and industrialization, and thus create new growth points through boosting the integration process. For more contents, members click here for USITO translation.

USITO Notes: The package will be the third batch of stimulus plans announced by China's industry authorities. Since late last year, the textile, chemistry, shipping, and a few other industries have respectively announced their stimulus plans. Experts say the MIIT package is a late one compared with other industries, given this package involves much complicated coordination between the sub sectors in the ICT industries.

Chinese ICT industries were no exception amongst the macro economic downturn. MIIT stats show that in the late half year of 2008, the growth rate of the ICT industries' added value was merely 5.4% whereas the growth was as high as 16% in the first half. It is reported that a few industries were especially hit by the crisis, such as the integrated circuit and high-end electronic components, as their core technologies heavily relied on foreign players, any external fluctuation would give them a blow. As a result, experts say, when the authorities formulate stimulus plans, their job was not simply granting money support. The government must crack the root problems, and thus a substantial portion of the stimulus focuses on supporting basic R&D and fostering new business models.


MOFCOM: Beijing won't have 'Buy China' clause

According to 2/10/2009 report in the Straits Times, Jiang Zengwei, Vice Minister of the Ministry of Commerce (MOFCOM), said that China will not impose a protectionist 'Buy China' clause in its economic stimulus package. According to him, China would be even-handed towards foreign and domestic products, and China's own RMB 4 trillion program will not discriminate against foreign businesses as some had feared.

In a MOFCOM press conference, Mr. Jiang said that China need to boost consumption, whether it's through domestically made goods or foreign-made goods. So as long as there's demand, China shall treat domestic and foreign products the same way.

In the U.S., the Congress received the 'Buy American' proposal of USD 827 billion stimulus package to support homegrown companies and workers. The Senate last week voted to soften these provisions, after President Barack Obama cautioned that the original wording could spark a trade war.

USITO Notes: Mr. Jiang made his remarks under the background that Chinese exports to other countries were sharply declining in recent months thanks to the financial crisis. Exports have for many years the key driver for China's economic growth as it constitues 40% of GDP. In recent months as the world situation turned worse, export driven businesses in the costal areas are on edge of collapse, with over half of factories being closed and millions of workers jobless.

MOFCOM as a renowned pro-trade authority in China (compared with other Chinese authorities) has been advocating fair trade and openness. However, it is not convincing to the international community that China is immune from any forms of the protectionist 'Buy China' clause. For instance, U.S. companies operating in China continue to see numerous obstacles in participating local level or industry level Chinese government procurement activities.

Profile of China's software industry 2008

China's software industry maintained rapid growth in 2008, with its revenue totaling RMB 757.29 billion (USD 110 billion), up 29.8% year on year. This was 8.3 percentage points higher than the previous year. Members click here for full text

New measures to boost service outsourcing

The Chinese government has announced a raft of tax breaks and subsidies to encourage the growth of service outsourcing. The measures to boost the development of service outsourcing were outlined in a document drafted by the Ministry of Commerce and approved by the State Council. Detail

Rural household appliance subsidy policy applies nationwide

China's campaign to promote sales of household appliances in rural areas has expanded from the pilot regions to the whole country as of February 1. The coverage widens to subsidize more products, including motorcycles, computers, water heaters and air conditioners. Detail

Xinhua: 2009, "the toughest" since 2000

China's government on February 1 warned 2009 will be "possibly the toughest year" since the turn of the century. Detail

Selected Chinese Media Reports



TD Industry Symposium Opens

To further propel the healthy and rapid development of the TD-SCDMA industry, MIIT convened a TD-SCDMA industry symposium on February 10, 2009. Heads of departments concerned under MIIT, CATR, TD-SCDMA Industry Alliance, and China Mobile, and leaders of over 30 foreign and Chinese enterprises engaging in the design, development and production of TD-SCDMA system, chip and handset showed up at the meeting. MIIT Vice Minister Xi Guohua chaired the symposium. Chinese Text

3G Calls Made in 18 Cities

Sources said that the TD-SCDMA project phase 2 has progressed very well, and people in 18 cities can make 3G calls now, including Changsha, Wuhan, Chongqing, Guiyang and Taiyuan. In December 2008, the TD phase 2 project was launched by China Mobile in 28 cities across China, and is scheduled to conclude at the end of this June. Chinese Text

Provincial Decree Calls for Support for TD

On February 5, 2009, the General Office of the People's Government of Mongolian Autonomous Region released the Notice on Supporting China Mobile's TD-SCDMA Development Project, ordering local governments and departments at various levels and relevant enterprises to make TD development plan a part of their respective development blueprints. Chinese Text

Qualcomm Signs CDMA2000 Deal with Linktop

China has become an important CDMA market globally. Over the past three months, Qualcomm has signed deals with many Chinese handset vendors licensing the production of CDMA2000 handset. On February 10, Qualcomm announced a deal signed with Xiamen-based Linktop for production of CDMA2000 handset, and the royalties are based on Qualcomm's global standard rates. Chinese Text

ZTE Won 15 WiMAX Contracts in 2008

According to an annual report released by In-Stat, a U.S.-based consulting company, among 94 new mobile WiMAX contracts signed in 2008, China's ZTE won 15, accounting for 16%, ranking second in number of new contract and integrated competitiveness, just after Alcatel-Lucent. The report pointed out that ZTE's WiMAX ranks first in growth potential. Chinese Text


20 Software Outsourcing Pilot Cities Approved

At the beginning of February 2009, the General Office of the State Council published the Reply concerning the Development of the Service Outsourcing Industry, under which, 20 cities including Beijing, Tianjin, Shanghai and Chongqing were designated as the Service Outsourcing Pilot City. A series of preferential polices will be implemented in these 20 cities to promote the development of the industry. Chinese Text

Software Export Hits USD 14.2b in 2008

Sources from MIIT told the media that China's software exports hit USD 14.2b in 2008, up 39% year on year. The software outsourcing service exports amounted to USD 1.59b in 2008, a 54.3% growth year on year. Chinese Text
China to Launch Google Earth Program

The State Bureau of Surveying and Mapping has made a strategic decision to build a national geographic information public service platform, to establish China's Google Earth system. Sources said that the State Surveying and Mapping Technology Committee met in Shanghai in November 2008, and proposed the launch of such program. Chinese Text

 


First Personal High Performance Computer Makes Debut

Following the successful debut of Dawning 5000A with an operational speed of 100 trillion times a second, Dawning announced the availability of China's proprietary personal high performance computer PHPC 100 in Tianjin, the first type of such computer in China. It is twice the size of common desktop host, and the max. computation speed can hit 250b times a second, equivalent to the combined capability of 40 common desktops. Chinese Text

Intel Partners with ENJOYOR

On February 11, Intel signed a deal with Zhejiang-based Enjoyor, a provider of intelligent traffic and digital medical solutions in China . Under the deal, Intel Capital will invest in ENJOYOR. Both parties will enter into cooperation in intelligent technology and mobile Internet. Zhejiang ENJOYOR, founded in November 1992, delivers total solutions for building a digital and intelligent city. Chinese Text

China's Super Computer to Use 8-Core Loongson

Sources said that China is developing a new type of high performance computer, Dawning 6000, featuring a computation speed of 1,000 trillion times a second, which will adopt a 8-core loongson for its most important calculation unit, and the U.S. processor for the operating system. Dawning 6000 will be completed in 2010, and used at South China Supercomputer Center. Chinese Text
Lenovo Set to Suffer Loss This Year

According to a foreign media report, Lenovo Chairman Liu Chuanzhi predicted Lenovo will continue to sustain yearly losses this year. He said that ¡°it is inappropriate for Lenovo to use its cash reserves to distribute dividends, and Lenovo will see a turnaround in profits in 2010. ¡± IDC forecasts a global 3.8% growth in PC shipment, but analysts believe Lenovo will see a 15.3% decline in operating income, and its share in global market will shrink further in 2009. Chinese Text

Huawei, ZTE Rank Top Two in Patents

Latest statistics published by the State Intellectual Property Office show that Shenzhen-based enterprises accounting for 50% in rankings of total quantity of three categories of patent and total quantity of patent for invention submitted for application. This mirrors the innovation capability of Shenzhen-based enterprises. Huawei and ZTE ranked top two in total quantity of three categories of patents (patent for invention, utility model patent, and design patent). Chinese Text

Shanghai : Annual Patent Applications Exceed 50,000 Cases

Sources told the media that the number of patent submitted for application in 2008 grew 11.9% over 2007, hitting 52,000. In three categories of patent applications, the patents for invention hit 17,800, growing 17.2% year on year. Chinese Text

MOST Launches Six S&T Special Projects Ahead of Schedule

The Ministry of Science and Technology will submit a proposal to the State Council for approval, aiming to create favorable technical conditions for responding to financial crisis. Under the plan, six key S&T special projects will be launched ahead of schedule. It is said that total investment in S&T special projects and technology R&D will reach several hundred billions. Chinese Text

Telstra Acquires Two Chinese SPs

On February 11, Telstra announced its purchase of 67% stakes from two Chinese SPs respectively, at USD 300m . The two acquired firms are China M, a mobile phone content provider, and Sharp Point, a technical service provider for China Mobile's mobile phone music platform. 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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