Regulations

GAPP: Foreign Firms Prohibited from Operating E-Games

At the ChinaJoy 2009 held on July 22, Sun Shoushan, Deputy Director-general of the General Administration of Press and Publication, said the sales income of the E-games industry in China has surpassed that of three traditional recreational industries: film, TV recreational programs and audio-video products. He emphasized that although GAPP encouraged foreign enterprises to work with domestic enterprises on E-games R&D, foreign enterprises are never allowed to operate E-games by way of a wholly-owned company or a joint venture. According to the statistics of the China Game Industry Report, in 2008, China’s E-games industry achieved a sales income of RMB18.38b, up 76.6% compared with 2007. At the same time, the core competitiveness of the E-games industry improved a lot. The year 2008 saw a sales income of RMB11.01b for China’s proprietary E-games, a growth of 60.1% year on year, making up 59.9% of total games market income, and exhibiting a great potential for strong growth. Chinese Text

GAPP Tightens Censorship Over Imported E-Games

The General Administration of Press and Publication announced a Circular on Strengthening the Censorship of Imported E-Games, which further regulated the prior examination procedures for publishing of online games and the examination & approval and supervision of online game works licensed by overseas copyright owners, and standardized the transaction and exhibition activities of imported E-games. While acknowledging great progress made in the development of online game industry on a compliant manner, the Circular noted a number of violations and illegal practices, which concerned game operation enterprises, overseas game makers and some government departments. According to the Circular, GAPP is the sole regulatory department authorized by the State Council to be responsible for examination and approval of imported E-games licensed by overseas copyright owners; any game publisher or operator based in China must go through the prior examination procedures specified by GAPP, and obtain relevant permits. Chinese Text

Draft China SOA Standards System Research Report Published for Comments

China Electronic Standardization Institute published the China SOA Standards System Research Report (draft for comments) in Shanghai. The draft will be submitted to ISO/IECJTC1. An international standard in the realm of information technology refers to a standard drafted by ISO/IEC JTC1. In 2008, CESI released the SOA Standards System Framework, and the Guide for SOA Users. The publishing of the draft report marked the establishment of the SOA standards system in China. The submission of the standards system publication is considered as a critical step for China to involve in international SOA standards setting process. Chinese Text

Software

China Launches Security Guardian System for E-government Computer Terminals

On July 22, the State Information Center, China National Information Security Testing Evaluation and Certification Center (CNITSEC) and Microsoft China jointly announced the launch of China’s proprietary E-government terminals security protection solution. This solution, via terminal security protection platforms deployed in different places, delivers comprehensive security protection services to government agencies, enterprises and institutions, ranging from security status monitoring, patches evaluation & distribution to configuration of security policies and virus detection. According to a StateInformationCenter official, this system incorporates resources, technologies, products and services of advantageous departments and leading enterprises in terms of terminal security, and can be used in various levels of government departments and large state-owned enterprises, providing all-round, powerful and easy-to-manage security protection functions for computer terminals. Chinese Text

Semiconductor

Loongson Industry Alliance Proclaimed

The Jiangsu Domestic Chip and Software Industry Alliance was founded in Changshu, Jiangsu on July 18. Thirteen Jiangsu-based enterprises and institutions working on R&D, production, cooperation, popularization and service of domestic chip and software joined the alliance as the first members. Sources said that this industry alliance will concentrate on domestic chips, principally Loongson processors, work on R&D of software, application and industry solutions, coordinate the development, testing and production plans of domestic chip and software products, make overall plan for roles of members in the industry chain, push forward the drafting of indigenous and controllable information technology standards, boost the information technology levels, fuel the development of domestic software & hardware technologies, and ultimately form a complete Loongson industry chain. Chinese Text

Hefei Introduces Hitachi Plasma Panel Production Line

Following the operation of China’s first plasma panel production line, which is owned by Changhong, another plasma panel production line was introduced from Japan’s Hitachi to the city of Hefei in Anhui, at the cost of RMB2b. This is China’s second plasma panel line. Its adoption, together with BOE’s LCD panel production nearby, makes Hefei one of China’s important new-type display industry centers. Under the agreement signed with Hitachi, Anhui Xinhao Plasma Display Co., Ltd. introduced Hitachi’s plasma production technology and production line equipment, and obtained a patent license for building a plasma panel production line with an annual capacity of 1.5 million pieces, covering diversified panel sizes. Chinese Text

ICT Plans to Set up Entity for Loongson R&D, Sales

Hu Weiwu, head of the Loongson working group formed under the Institute of Computing Technology (ICT), CAS, and general designer of Loongson, said in an interview with the media that the Institute of Computing Technology, CAS will establish a company responsible for the R&D and sales of Loongson processors. Sources from the industry said the company to be incorporated jointly by ICT and municipal government of Tianjin will have a registered capital of RMB1b. The news is yet to be confirmed. Jiangsu Loongson Menglan, a company jointly established by ICT and Jiangsu Menglan Group, focuses on the R&D, production and sales of Loongson computers, not the R&D and sales of Loongson processors. To streamline the Loongson processors sales system, ICT ended in advance the partnership with STMicroelectronics, and purchased MIPS license. Chinese Text

TCL Invests RMB 100 Mln in LCD Panel Production

Major television maker TCL Corp. has invested more than RMB 100 million to prepare for liquid crystal display (LCD) panel production. Chairman Li Dongsheng also called for government support to the domestic LCD industry. Li predicted that overseas sales, which account for 46% of TCL's total sales, will grow in the second half of the year. Chinese Text

Internet

China to Launch Green E-Games Publication Program

Sun Shoushan, Deputy Director-general of General Administration of Press and Publication, said at ChinaJoy2009 that GAPP will launch this year the China Green E-Games Publication Program; an action plan will be proposed based on a thorough survey and implemented in 2010, aiming to guide the E-games publication industry to enter a brand-new phase of green E-games in the next 5 years. According to Sun, to promote the sustained development of the national E-games industry, attention should be given to the work in three areas: first, highlight the role of minors and youths in developing the E-games industry; second, continue to work on excellent game works combining patriotism with modern cultural characteristics; and third, continue to work on building of our national cultural image, and include our national heritage and values in the contents of games. Chinese Text

The Second Sino-British Round-Table on Internet

The Second Sino-British Round-Table on Internet sponsored by the State Council Information Office and the U.K. Department for Business, Innovation and Skills (BIS) was held in Beijing on July 22. The forum was themed “Meet Challenges and Enjoy Opportunities”. Over 110 representatives from both sides’ government organs, academic institutions, Internet industry organizations and famed Internet enterprises attended the round-table. Cai Mingzhao, Deputy Director-general of the State Council Information Office, said in his keynote speech that remarkable progress has been made in the development of Internet in China, and Internet is playing a growing role in the people’s life. He also noted problems and challenges posed by Internet to the whole country, including porn contents, hackers, viruses, online frauds and thefts. While highlighting that Internet has become a part of critical infrastructures of a nation, and cyber-security now constitutes an important aspect of national security, Cai called for robust measures to be adopted to ensure secure operation of Internet and safe flow of network information. Mervyn Davies, the Secretary of the Department for Trade and Investment, said in his keynote speech that Chinese Internet enterprises are welcome to invest in U.K. Chinese Text

Trade & Investment

Homegrown Digital TV Standards to Go International

China’s national standard for digital TV, which was issued two years ago, is now a candidate in a standards race conducted in Ecuador, which is approaching the most critical stage. If selected, China’s proprietary digital TV standard will be implemented overseas for the first time. This digital TV standard is the terrestrial digital TV standard Number GB20600-2006 issued by the Standardization Administration of China in August 2006, and as Chinese proprietary standard, it was formed on basis of combination of multi-carrier and single carrier technologies. Currently four digital TV standards are implemented globally and they are Europe’s DVB-T, U.S.’ ATSC, Japan’s ISDB-T and China’s DTMB which is only effective in Chinese mainland and Hong Kong. Sources said relevant departments are paying much attention to this competition. Potevio has been commissioned as a key export enterprise to be given priority support to work on overseas application of Chinese digital TV standard. Chinese Text

Culture Industry Rejuvenation Plan Approved

Chinese Premier Wen Jiabao chaired the executive meeting of the State Council on July 22, which passed the Culture Industry Rejuvenation Plan. The meeting reached a consensus that in the new context of responding to financial crisis, paying attention to the development of public-interest culture, and accelerating the development of the culture industry will be of great significance to satisfying diversified, multi-faceted cultural demands of people, expanding domestic demands, particularly consumption of households, and propelling the restructuring of the economic system. The plan set out eight key tasks. Task 1 is to accelerate the development of key culture industries including cultural creative, film & TV production, publication & issue …. digital content and cartoons. Task 6 is to push forward the interregional reorganization in cable TV, cinema system, digital film facilities and publication issue system, and make urban and rural cultural markets prosper. Task 7 is to vigorously develop new cultural industries including mobile multimedia broadcasting, online broadcasting and film & TV, and mobile TV, and accelerate the upgrading of the cultural industry. Chinese Text

3G Mobile Communications

MIIT: 3G Construction Goes Well in H1

A press conference on the economic performance of industries and the communication industry in the first half of 2009 was held on July 22 by the Ministry of Industry and Information Technology. Data shows that the first half of 2009 saw a climbing growth of the communication industry, and that the 3G construction is progressing well, and a 3G investment of RMB80b has been completed, according to MIIT’ s General Engineer Zhu Hongren, who also serves as the Director-general of the Bureau of Operations Monitoring and Coordination. China Mobile has completed the construction of 44,000 third generation base stations, and is initiating the third phase of TD deployment project, aiming to extend TD services to 238 cities by the end of this year, while China Telecom and China Unicom have completed the work on 146,000 base stations, and delivered 3G network services in 342 and 100 cities respectively. Chinese Text

ChinaMobile Said to Acquire Telenor’s Pakistani Subsidiary

According to a foreign media report, China Mobile now is negotiating with Telenor, Norwegian telecom group, hoping to acquire Telenor’ s Pakistani subsidiary. Sources said that if the deal is reached on merger of mobile networks of the two companies in Pakistan, the post-merger network operator will own about 2.6 million users in Pakistan, making up 26% of the market. China Mobile entered Pakistan’s mobile market in 2007, through acquiring 100% of Paktel, a Pakistani operator, at USD460m. But it failed another acquisition case, due to price gaps. Now Pakistan has 5 mobile service operators, including China Mobile’s subsidiary. Chinese Text

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