No.387 August 21, 2009
Special Issues  
USITO/Amcham Breakfast Series: "Green Dam ¨C The Story of 2009 Spring", Sept. 2, 2009
USITO Environment Work Group Meeting
 

USITO and AmCham's IT/Telecom Forum are pleased to invite you to the breakfast series featuring Dr. John Chiang of USITO. MIIT once mandated all PCs China be pre-installed with the Green Dam filtering software from July 1st, but soon cancelled the ruling due to strong oppositions. Dr. Chiang will review the chronicle of the events and discuss government policy on purifying and regulating Internet. You are welcome to register with ftzhang@usito.org ASAP to attend the event.

Top Story

New Regulations for Compulsory Product Certification Comes Into Effect September 1, 2009

Early last month, the State General Administration for Quality Supervision and Inspection and Quarantine of the People's Republic of China (AQSIQ) announced that the new Regulations for Compulsory Product Certification will come into effect since 9/1/2009, which will then replace the 5/1/2002 version.

The rule primarily specifies the purposes of the certificatoin work, what kind of products are(not) subject to China's compulsory certification regime, what the competent authorities are, as well as the certification procedures (i.e., how to get the "CCC" mark granted by AQSIQ). For instance, it states that the purpose of the regulation is "to safeguard national security, prevent frauds, ensure the human health or safety, protect animals and plants, and protect environment"; the top certification authority in China is AQSIQ, while the Certification and Accreditation Administration of China (CNCA) under AQSIQ is responsible for the specific work like implementation, supervision, management and coordination. The product catalog (subject to compulsory certification) will be formulated and adjusted by AQSIQ, CNCA and "other competent State Council agencies".

USITO has provided a draft English translation of the new regulation, members please click here for the full text. Click here for the 2002 English version.

USITO Notes: The existing Certification Regulation has been in place for nearly seven and a half years, serving as the top authoritative guideline in China's product certification field. The updated version, compared with the old one, is especially noteworthy in that it states China would "encourage equal and reciprocal international mutual recognition activities/agreement (MRA) for compulsory product certification" (Clause 5 in the general principles section). This is the first time that Chinese authorities have inked China's stance on MRA issue. The world would welcome this development as a variety of international stakeholders have been approaching the Chinese side to streamline China's complicated certification process and recognize some world prevailing standards. At the current stage, however, MRA is more like a goodwill, partly because China's cross-sectoral certification regime is beyond AQSIQ's control, there are much more authorities in China to negotiate before real MRA can be reached. The new rule seems to have addressed this concern, by stating that "MRA activities shall be conducted within the framework by AQSIQ, CNCA or relevant authorized departments".

Compared with the old version, the new rule also emphasizes a few other points like the confidentiality issue - "Organizations and their staff are under obligations to keep confidential business secrets, technical secrets such as production techniques and process, and information obtained from the certification activities", and increased penalty for infringement by ruling for the first time that "severe infringement are subject to Criminal Penalty", whereas in previous versions criminal penalty does not apply to any certification misconduct whatsoever. USITO's Standards Work Group plans to discuss this new rule in the next SWG meeting, which is scheduled to take place in early September, please pay attention to our imminent notice.


Undersea Cables Damaged, Disrupting Web Access and Emails

According to official sources from the Ministry of Industry and Information Technology (MIIT), the severe Taiwan typhoon and earthquake disaster happened in mid-August have damaged a few important undersea cables, thus disrupting international telecom services between Chinese mainland and other countries/regions.

The earthquake and earlier undersea landslides damaged undersea cables mostly in south east of Taiwan, the majority of which had been supporting phone and Internet services from the Chinese mainland to Taiwan, U.S., Japan, Korea and Singapore. It is said that traffic is now being rerouted through operational cables and repairs to the damaged cables are under way.

Sources from China Unicom said that the FNAL/RNAL cable owned by China Unicom, a key information conduit for northeast Asia, were also broken, which had especially caused disruption to Internet services from China to U.S.. people.com.cn, 8/17/2009

USITO Notes: In the fast few days email and Web connections to the U.S. have been quite intermittent, the most popular U.S. Internet portals including MSN and Yahoo kept unaccessible, and USITO offices saw hundreds of emails to the U.S. bounced back. There is not yet any official timetable available for the repair progress. Similar accident once happened in December 2006, when it took nearly a month to fully recover the Sino-U.S. communcations. We hereby want to alert our members and friends of this irregular accident, please do cc an email to wj2020@gmail.com if you want to make sure your messages reach USITO.


Member in the News: Smart Phones Sales Surge

According to local media report, China's smartphone market is expected to take off in the next six months, though currently the majority of Chinese mobile users use entry-level cell phones for making calls and sending text messages. . Apple's iPhone is expected to be officially introduced in China in partnership with China Unicom. Computer makers Lenovo and Dell reportedly are ready to release their smartphones in China in the next few weeks. Meanwhile, companies such as Samsung Electronics and Nokia are already on the battlefield. Detail

Knowledge Center: China's High-Tech Zones Analysis

China's high-tech development zones' competitiveness has migrated from traditional resource advantages and policy support to a more comprehensive competitive advantage. Member Download
Selected Chinese Media Reports
 

Regulations

SARFT Regulates Internet TV Market

The State Administration of Radio, Film and Television (SARFT) issued an official circular on August 14, tightening control over Internet audio & visual program service providers using TV sets as receiving terminals. According to the circular, any firm which delivers audio-visual program services through linking Internet with TV sets or via set top boxes, must obtain the Permit for Disseminating Audio-Visual Programs on Information Networks whose business scope covers audio-visual programs integration and operation service with TV sets as receiving terminals, according to the Provisions on Internet Audio-Visual Program Service and the Administrative Measures on Disseminating Audio-Visual Programs on Information Networks including Internet. SARFT required its branches across China, upon receiving this circular, to conduct an all-round inspection of Internet audio-visual program service providers using TV sets as receiving terminals within their respective jurisdiction. Under this circular and SARFT's decree No.39, local radio stations, TV stations and radio-film-TV groups approved by SARFT in provinces, autonomous regions, municipalities directly under the central government, and those above the level of provincial capital city and city with independent budgetary status, can apply for or set up an entity for engaging in Internet audio-visual program integration and operation services with TV sets as receiving terminals. No other organizations or individuals can operate such services. Chinese Text

Handset Earphone Interface Standard Approved

Sources from China Communications Standards Association said that the Technical Requirements and Test Methods of Wired Earphone Interface for Mobile Communication Handsets has been approved by MIIT, and will be implemented on Sept. 1. According to experts, this new standard complies with currently internationally recognized standard for earphones for recreational purposes, and thus handsets, computers, MP3 and MP4 can share one earphone. Under the new standard, standard-sized concentric connectors, 2.5mm or 3.5mm in connector diameter, are adopted for wired earphone interface of handsets, and compliant handsets shall bear the Standard Wired Earphone Interface mark in the manuals and on the packages. Different from the standard for handset chargers, the handset earphone standard enjoys favorable market conditions for commercial application. Chinese Text

Digital Media

TV Shopping Business Model To Be Overhauled

Sources said that SARFT is developing regulations to overseeing TV shopping programs, and will take measures to deregulate and encourage the TV shopping programs initiated by SARFT provincial branches. For Happigo and OCJ under auspices of SARFT entities which have acquired advantaged position and are accelerating growth paces, a very low profit rate will be therefore reduced to zero, while for such TV shopping companies as Acorn International which has been listed overseas, their business pattern may have to face a fatal impact. According to SARFT¡¯s circular, measures should be taken to strengthen management over the production of TV shopping programs, and all the shopping programs shall be produced by licensed broadcasting agencies and program producers. ¡°If this regulatory measure is adopted, the false representations widely contained in TV shopping advertisements will be eliminated fundamentally, ¡± said SARFT in an internal document. Chinese Text

Trade & Investment

Electronic Information Industry Sees New Round of Restructuring

Sources said the State-owned Assets Supervision and Administration Commission (SASAC) and National Development and Reform Commission (NDRC) are considering the guidelines for accelerating the merger and reorganization of state-owned enterprises and a merger & reorganization plan covering many key industries. The electronic information industry is said to be covered under the plan. According to Li Rongrong, SASAC Chairman, the number of key enterprises under SASAC will be reduced to 80~100 by 2010. The proposed reorganization plan may involve many enterprises in the electronic information line, which are under SASAC. What is most likely is that the Telecommunication Technology Research Institute (dominated by Datang Group) merges with Wuhan Research Institute of Posts and Telecommunications. The guidelines and reorganization plan will be likely published for comments soon. Chinese Text

3G Mobile Communications

China Telecom to Initiate New Round of CDMA Handset Procurement

China Telecom is going to call a meeting where handset vendors and dealers (distributors) will have direct face-to-face talks for placing orders for CDMA handsets. Sources said CDMA handset vendors and distributors will attend the meeting, including Samsung, LG, Hisense, Huawei, ZTE, and almost all the handset distributors. The direct negotiations between vendors and distributors will increase the transparency. Relevant authority under China Telecom has distributed a circular among China Telecom¡¯s provincial branches, licensed agents and handset vendors for the upcoming get-together. Chinese Text

ChinaMobile to Partner with MediaTek, HTC for TD Deployment

According to a Taiwan media report, China Mobile President Wang Jianzhou will pay a business visit to Taiwan on August 21. Wang will sign deals with MediaTek and HTC for developing TD-SCDMA, and enter into all-round cooperation with Taiwan¡¯s communication, information and entertainment industries. Chinese Text

Software

China Co-design Software Alliance Founded in Beijing

China Co-Design Software Alliance was established in Beijing, by leading enterprises in domestic design software sector including Sware, ExplorerSoft, Superb Hi-Tech and Hongye Technology. This is China¡¯s first such co-design software alliance. According to insiders, the establishment of the Alliance enables seamless collaboration of design work in construction, structure, water supply and drainage, heating and ventilation, and electricity, thus greatly boosting the efficiency of the entire team. Collaborative design means different design departments and design teams within an enterprise work together to accomplish a project via information means. Chinese Text

China Mobile's App Store Opens

China Mobile announced the availability of its Mobile Market on August 17. The Mobile Market, the first global online software shop initiated by a telecom carrier, will provide over 500m users a brand-new platform for various handset applications and digital products. China Mobile commented that this will produce far-reaching influence on promoting the development and application of China¡¯s proprietary TD-SCDMA, and achieving the win-win situation of the industry chain. According to China Mobile, the Mobile Market will first enable seamless connection of China Mobile network and applications with user handsets, delivering an open, content-rich and fast platform for downloading of handset software and applications. It will also provide better application support for the development of TD-SCDMA. Chinese Text

Semiconductor

China to Announce Guidelines for Semiconductor Lighting Energy-Saving Sector

The Guidelines for the Development of the Semiconductor Lighting Energy-Saving Industry has been initially drafted and will be published in early September after receiving the feedbacks of various ministries and commissions, said Liu Shiping from China Illuminating Engineering Society. According to the Guidelines, superior resources shall be pooled to encourage the growth of key enterprises having intellectual property rights, and form 3-5 large backbone enterprises with international competitive powers. Relevant enterprises commented that with the implementation of the energy-saving and environmental protection policies, the semiconductor lighting energy-saving industry will usher in a period of rapid development. Chinese Text

Internet

MIIT to Release Internet Security Rules

The Ministry of Industry and Information Technology announced on August 18 that it will publish the Administrative Measures for Assurance and Supervision of Communication Network Security (draft for comments), in order to tighten the management over communication network security. Under the new rules, communication network operators and Internet domain name service providers will be subject to a disciplinary warning or fines of no more than RMB 30,000 in case they fail to go through registration formalities or significant security flaws are found. According to the Measures, public communication networks and Internet managed and operated by telecom carriers and Internet domain name service providers shall be equipped with network security assurance measures. The organizations operating networks shall divide their networks in operation into different units, which shall be assigned different security levels between level 1 through level 5, per their respective importance to the national security, social stability and economic development. The purpose of publishing the Measures is to ¡°prevent jam, interruption, breakdown or illegal control of communication networks, and loss, leakage or unauthorized modification of data when transmitted, stored or processed in communication networks¡±. 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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