No.362 February 27, 2009
Special Issues  
  Last Call for Joining USITO Event on Government Stimulus Packages
 
USITO Policy Call Brief
 

In the time of world economic turndown, governments are issuing a variety of economic stimulus plans. USITO is honored to host a roundtable event on this topic featuring three experts: Dr. Robert Pepper, VP Global Technology Policy, Cisco; Lester Ross, Co-Managing Partner, Wilmer Cutler Pickering Hale and Dorr LLP; Dr. Zhao Zhongxiu, Dean of School of International Trade and Economics, University of International Business Economics(UIBE). Click here for notice

Top Stories

EU Reaps Huge Contracts from Chinese Buying Delegation

On February 24, 2009, a 300-people or so "China Trade and Investment Promotion Delegation", led by Chinese Commerce Minister Chen Deming and made up of Chinese officials and entrepreneurs left Beijing for Europe. The delegation will visit four countries: Germany, Switzerland, Spain and Britain. According to the Ministry of Commerce (MOFCOM) press release, the delegation will purchase advanced equipment, technology, key products and service worth more than RMB 15 billion (USD 2.2 billion).

MOFCOM says that "the move sends a positive signal of China's vigorous demand and sustained growth, which is of great significance in expanding the mutual opening of markets between China and Europe", and it is extremely important "Amid the backdrop of an increasingly prudent world economic environment". The delegation followed on the heels of Chinese Premier Wen Jiabao's "tour of confidence" to Europe from Jan. 27 to Feb. 3 this year, during which Wen promised to dispatch a procurement team and expand China's European imports.

A report by Xinhua News Agency states that China's procurement in EU will serve as a new driving force to boost its own economic growth. Another important reason for the purchase is, the deteriorating external economic environment has pushed China to eliminate inefficient production and upgrade industrial structure. In this regard, importing advanced technology and equipment from EU is conducive to economic structure readjustment in China and will speed up its modernization process. People.com.cn, 2/25/2009

USITO Notes: Since 2004, EU has replaced US to become China's biggest trading partner and the largest export market (total trade volume in 2008 reaches USD 425.6 billion, 27.5% ahead of the trade with US). EU, as most other western economies, also sees broadening trade deficit with China. The deals could to some extent ease the EU firms' prospect at the time of economic downturn. On the other hand, it could help stimulate China's domestic demand, as the RMB 4 trillion stimulus plan announced in November 2008 needs to be implemented.

This is a great move in the time of global economic depression. The most innovative way out of the trouble should be closer collaboration among the nations. USITO keeps applauding such international cooperation efforts made by the Chinese government, and looks forward to strengthening the ties in the U.S.-China front.


Shanghai Daily: Unicom set to launch Apple's iPhone 3G

According to a 2/26/2009 report in Shanghai Daily, the iPhone 3G is likely to debut in China in May, using WCDMA standard. Since China Unicom is the only carrier to operate WCDMA in China, it must be the one to sign the deal with Apple. Sources said Apple Inc and China Unicom are close to an agreement to introduce the iPhone 3G into China.

Sources told Shanghai Daily that the company was in talks with Apple to introduce iPhone 3G. The newspaper said China Unicom is understood to be prepared to offer more concessions than China Mobile, another potential partner Apple is talking to. An analyst with the market research firm Ovum said that "It opens the door for Apple to enter the huge China market. It also gives China Unicom a competitive weapon in the high-value subscriber segment (against China Mobile)."

USITO Notes: The Apple-Unicom marriage story has swamped the Chinese local media in recent weeks and we finds it necessary to forward the rumor. However, it is clear that official voices from both parties are yet available. So far, both companies have declined to comment on the rumor.

As the media reported, Apple tried hard to talk with China Mobile to bringing in iPhone as early as 2007, but reaped no reward so far. After China issued three 3G licenses in early January, it seems even more difficult to continue the talks, since China Mobile's TD-SCDMA network as a unique technology could hardly support iPhone.

Lenovo to cut 450 jobs

Lenovo, the world's fourth largest PC maker, said on 2/25/2009 that it plans to cut 450 jobs in China. The cut will affect the China-based supporting staff of Lenovo's overseas business. It aims to further reduce the company's costs by enhancing efficiency. Detail

New Commerce pick has strong ties to tech and China

President Obama may soon announce former Washington Gov. Gary Locke as his third choice for secretary of commerce. Locke would bring to the position a strong expertise in business relations with China, knowledge of the clean energy sector, and a familiarity with the high tech industry. Detail

China, a favored job location

Chinese mainland has become the most favored job assignment destination in Asia for multinationals. 78% of all respondents from 112 companies selected the Chinese mainland as their key assignment location in Asia, followed by Singapore (43%) and Hong Kong (39%). Detail
Selected Chinese Media Reports


MIIT to Encourage Taiwan to Make TD Laptops

On 2/26, the 5th Forum on Cross-straits Information Industry Technology Standards was held in Chongqing. Discussions among experts and representatives from enterprises centered on key issues in seven areas. An MIIT Official said that MIIT will make efforts to promote TD-SCDMA cooperation btw Taiwan firms and Chinese mainland's telecom carriers, vendors and handset makers. Chinese Text

Nokia-Siemens Wins Big Deals from China

China Mobile and China Unicom respectively signed a deal with Nokia-Siemens, and the two deals hit RMB 7.6b. This has been the first big deal signed since a high-profile delegation of Chinese businessmen was established to purchase goods from Europe. According to the deals, China Mobile and China Unicom will purchase 2G and 3G mobile communication equipment and relevant services from Nokia-Siemens in 2009. Chinese Text

MIIT Calls for Elaborate Work on PHS Phase-out

The Ministry of Industry and Information Technology (MIIT) published the Notice Concerning Wiress Access System at 1900-1920MHz range, setting a deadline for the phase-out of PHS and availability of 1900-1920MHz for other services. MIIT required China Telecom and China Unicom to take good care of the follow-up matters while safeguarding users' interests. Chinese Text

China Mobile to Roll Out TD Wireless Phone Set in H1

Sources from Guangdong Branch of China Mobile told China Business News that the TD-SCDMA mobile wireless fixed phone service is undergoing tests, and its debut is scheduled in the first half of 2009. Six vendors won the contracts for supplying wireless fixed phone sets, including Lenovo Mobile, TCL, Huawei and ZTE. Chinese Text

China Mobile to Launch OMS Application Next Year

Sources said that China Mobile has completed the R&D of its Open Mobile System (OMS), and is now working with some vendors on the testing of OMS. They predicted that Q2 next year will see large size application of OMS platform. According to China Mobile, OMS is Linux-based end-use basic software and solution, which is open, secure, easy to use and user-friendly. Chinese Text

China Unicom Extends Network in U.S.

China Unicom set up a Virtual Point of Presence (VPOP) in Chicago and Dallas respectively, extending its network and services to the central region of U.S. Before that, China Unicom had extended its network to eastern and western coasts of U.S., deploying network infrastructures in Los Angeles and New York and delivering international voice, dedicated line services, etc.Chinese Text

ZTE Wins WCDMA Expansion Contract from France

ZTE announced on February 23 that it signed a UMTS expansion contract with French carrier OMT, further progress since two sides established partnership on UMTS in early 2008. This marked a further breakthrough for ZTE. Under the contract, ZTE will supply 2G and 3G equipment for multiple network deployed in the Caribbean Sea region and the Indian Ocean region. Chinese Text


First Provincial CMMB Operator Established

Shandong China Broadcasting Co., Ltd., a provincial CMMB operator, was proclaimed on February 25. Shandong China Broadcasting Co., Ltd. is a joint venture owned by China Satellite Mobile Broadcasting Corporation under SARFT, and Shandong Broadcasting and TV Station and broadcast & TV authorities in 17 cities, and is the first licensed provincial CMMB operator in China. Chinese Text

China's Software Outsourcing Industry Sees Slowed Growth

Latest statistics released by Ccid Consulting at the 2009 China IT Market Annual Meeting on February 18 showed that the growth of China's software outsourcing industry fell to below 30% in 2008 from over 40% in the past three years, hitting USD 2.58b. Chinese Text

Kingdee Software Wins First U.S. Contract

Kingdee Software announced on 2/26 that its accounting system for enterprise customers has been adopted by a U.S. pharmaceutical firm in its Chinese and U.S.-based branches. This is the first order from a U.S. company with Kingdee Software. The customer described Kingdee's software in a news relesase posted in Yahoo as ˇ° a state-of-the-art, westernized enterprise systemˇ±. Chinese Text

 

Special Fiscal Funds Granted to Support Color TV Industry Chain

NDRC issued a circular yesterday, stating that to promote the strategic transformation of China ' s color TV industry, and accelerate the development of flat panel display industry, special projects aiming to facilitate strategic transformation of color TV industry will be implemented for three consecutive years starting from 2009, and funds will be granted for some key projects. Chinese Text

CEC Signs Strategic Cooperation Agreement with Shenzhen Government

On February 20, China Electronics Corporation and the municipal government of Shenzhen signed a framework agreement and a memorandum on strategic cooperation in Shenzhen. This strategic cooperation agreement contained many key clauses. Under the agreement, both parties will increase support for each other. Chinese Text

Computer for Farmers to Be Sold in March

Sources told China Business News that following the February 19 bid invitation for supplying PCs for farmers, bids will be invited from PC distributors this week. Upon release of winners on March 1, selected PC vendors will launch the sales of their PC products in rural areas. 21 PC vendors joined the bidding procedures. Chinese Text

Sharp Plans to Produce LCD Panel in China

Sharp said it is planning to work with Chinese large electronics vendor to produce LCD panel in China. The prospective partner is SVA Group. Sharp's purpose in moving production to China to make its prices more competitive. Chinese Text

Industry Calls for Forming OLED Industry Alliance .

China is considering establishing the OLED Industry Alliance, aiming to create conditions for China staying ahead of competition in the next generation LCD industry. This year. China Video Industry Association focused its first workshop on OLED. The 2009 OLED Technology and Application Innovation Workshop was held in Beijing on February 25. Chinese Text



China Unicom, Huawei Join Purchase Team

A delegation formed of about 100 representatives from key enterprises will leave for Europe on February 28, with a mission of purchasing much-needed goods and services for China. Sources said the delegation will head for Germany, Switzerland, Spain and U.K.. China Unicom and Huawei are members of this delegation. Chinese Text

ZTE Handset Factory in Venezuela Launched

ZTE held an opening ceremony for its handset factory in Venezuela on Febuary 18 (local time). Chinese Vice President Xi Jinping, and Venezuelan President Chavez watched the ceremony through direct broadcasting satellite. Chinese Text

Two Chinese Firms Among Fast 50

Fast Company Magazine, one of the most influential U.S. business magazines, published Fast 50, the top 50 innovative companies in 2009. Two Chinese companies are on the list of Fast 50. WuXi PharmaTech ranked 8th and BYD ranked 45 th . Chinese Text

Chinese Enterprises Can Wholly Operate Telecom and Travel Services in Pakistan

The Ministry of Commerce announced on February 23 that China signed China-Pakistan Service and Trade Agreement with the government of Pakistan on February 21. According to the agreement, Chinese stakeholder can at most own 99.99% in an enterprise started in Pakistan, and Chinese wholly-owned enterprises can be established in three service sectors: express delivery, telecom and tourism. Chinese Text

Video Websites Can Deliver Mobile Phone Audio & Video Services

Liu Hong, Vice President of Letv.com, told the media on February 23 that Letv.com has obtained the approval of SARFT for launching audio and video content services via mobile phone. Letv.com is one of the first websites licensed by SARFT. 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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