Regulations

MIIT to Propel Legislation on Mobile Phone Identification Policy

According to a special action plan against mobile phone porn information announced by MIIT, MIIT, while cracking down upon dissemination of porn information via mobile phones, will work with departments concerned to draft and release the Provisions on Communication Short Message Services by the end of 2010, which is intended to provide legal basis for overall implementation of the mobile phone user registration work. The action plan has been distributed to all of its branch communication administrations, operators and SPs. With a view to tightening the supervision and building a permanent regulation mechanism, MIIT plans to conduct a special inspection of basic telecom carriers for their compliance with the Regulations on Information Security Responsibility of Basic Telecom Carriers, and build a mechanism for daily supervision and evaluation of the implementation of information security responsibility at basic telecom carriers. MIIT will also work with the Ministry of Public Security and State Council Information Office to accelerate the legislation paces to unveil the Provisions on Communication Short Message Services. Chinese Text

Four Tasks Announced to Address Network Information Security Issues

MIIT Minister Li Yizhong pointed out at the National Industry and Information Technology Work Conference on December 21 that the network and information security issues are becoming a big concern, and one of the tasks of MIIT in 2010 is to “give prominence to the network and information security, and safeguard the national security and social stability.” To address the security issues, he proposed four key tasks: first, implement the guidelines of the State Council on strengthening the network and information security across the board, propel the legislation in this field, and provide security assurance for basic information networks and key information systems; second, strengthen assurance measures and technical assurance abilities, and continue to pay attention to the construction of national network and information security infrastructures; third, urge enterprises to strictly implement corresponding responsibility for network & information security, and plan to take special actions against porn information on handsets in the next full year; and fourth, accomplish the task of providing communication, radio and network & information security assurance for Shanghai World Expo and Guangzhou Asian Games. Chinese Text

MIIT Unveils Six Key Industries for 2010

MIIT will, based on the nation’s twelfth 5-Year plan, consider making the information network, advanced manufacturing, producer services, new energy, new materials and biological pharmaceutical the six key industries to be given special attention in 2010, Li Yizhong, MIIT Minister, said at the 2010 National Industry and Information Technology Work Conference on December 21. He added that MIIT will institute special project plans and industry policies, increase R&D support, and strive to generate a number of Chinese proprietary technologies and standards, accelerate the industrialization process and promote the upgrading of industries. According to Li, in cultivating the six key industries, great efforts shall be made to make breakthroughs in core technologies and propel the industrialization, and widen the space for the development of these industries. When speaking of how to cultivate the information industry, Li announced the goals for the development of the information industry in 2010, and they are: speeding up the transformation of the communication industry, scheduling and guiding the development of the next generation networks, and increasing support for such fields as IC, new display devices, special electronic equipment, materials and basic software to make sure that critical technologies are self-owned and controllable. Chinese Text

Trade & Investment

Huawei Defeats Ericsson on Swedish Deal

A foreign media report said on December 19 that Tele2, Swedish mobile operator, and Telenor, Norway’s mobile operator, announced that they have awarded Huawei a contract for supplying communication equipment for a 4G network constructed jointly by them in North Europe. Huawei beat Ericsson and won the deal. This 4G LTE network, in which the two operators will invest billions of euros in the next years, is built to satisfy the needs of rocketing mobile phone data traffic, and provide mobile TV and games services. The success of Chinese vendors such as Huawei in growing their market shares due to low-prices advantage is threatening Ericsson, Nokia-Siemens and Alcatel-Lucent. Ericsson expressed its disappointment for failing to win the deal. Chinese Text

Anti-Dumping Hearing Held in India

The India’s Ministry of Commerce & Industry held an anti-dumping hearing against SDH (Synchronous Digital Hierarchy) transmission equipment originally produced in China and Israel on December 21. Huawei, ZTE and other stakeholders are allowed to attend the hearing. In April this year, India launched an anti-dumping investigation against SDH equipment made in China, and the investigation concluded with an affirmative award in Sept. News said on December 11 the Indian customs authority has decided to levy provisional anti-dumping duties on the equipment from China. This case involves many Chinese communication equipment vendors, and different duty rates are imposed on them. For Fiberhome and ZTE, the rates are as high as 236%. SDH products are basic equipment used in communication networks, and the Indian market is one of the key markets for Chinese vendors. Chinese Text

China’s Appeal Turned Down

On December 21, the WTO’s Appellate Body distributed a ruling over the appeal lodged by China against a WTO panel ruling on import and distribution of publications, which failed to uphold China’s allegations. The Ministry of Commerce spokesman Yao Jian said on the same day that China has always fulfilled its obligations under WTO agreement on market access for publications, and the channels for foreign publications, films and audio-visual products entering Chinese market are extremely open. China welcomes the clarification of some of the expert panel ruling made by the Appellate Body, and acknowledgement of China’s rights to quote WTO exception items in this case. China has expressed regret over the other parts of the ruling made by the Appellate Body. China assets that as cultural products are of both business value and cultural value, this unique characteristic requires that the treatment of cultural products and of ordinary cargo in trade be differentiated. Chinese Text

Software

China to Draft SOA National Standards in 2010

China National Information Technology Standardization Technical Committee announced on December 22 that an SOA Standards Work Group was established in Beijing, whose mission is to formulate four SOA national standards in 2010. The SOA Standards Work Group is responsible for drafting China’s national standards for SOA, nationwide implementation of SOA standards and widening the SOA standardization in relevant industries and sectors. China Electronics Standardization Institute (CESI) is in charge of the work of the work group’s secretariat. According to Gao Lin, Director of CESI’s InformationTechnologyCenter and Secretary-general of the SOA Standards Work Group, the four national standards include SOA Terms, General Technical Requirements for SOA, SOA Standardization Guide and Specifications for SOA Service Quality. Chinese Text

MIIT Sets Growth Target for Software Service Industry

On December 21, MIIT Minister Li Yizhong set a 20% target for the revenue growth of the software service industry in 2010. At the National Industry and Information Technology Work Conference held today, Li said MIIT expects the traffic volume of telecom services to grow about 12%, the revenues to grow about 4.5%, the telecom rates to fall 9%, and the software service revenues to grow about 20% in 2010. When speaking of main tasks in 2010, Li stated MIIT will announce new policies encouraging the development of software and IC industries, and unveil the measures for accreditation of first unit of key technology equipment and the implementation of pilot projects. MIIT will work with departments concerned to consider setting up a risk allowance fund for encouraging the use of first unit of domestic key equipment, continue to give play to the electronics development fund, and set up an equipment development fund. Li vowed to implement a preferential policy which allows a corporate income tax set-off by R&D investment, and encourage the use of indigenous innovation products and technologies by means of government procurement. Chinese Text

Software Output Value to Set New High in 2010

“The output value of China’s software industry is expected to exceed RMB 900b this year, and top RMB 1 trillion in the next year,” said Chen Chong, Chairman of China Software Industry Association, who described the software industry as “an engine driving the development of the information industry”. According to him, despite the expansion of the global financial crisis seriously influencing many industries and sectors in China slowed down the growth of the software industry in 2009, the industry still maintains a >20% growth rate, and is “one of the fastest growing industries”. In fact, the software industry is a critical factor driving the growth of China’s economy. A survey conducted by IDC shows that China’s IT spending in 2009 will hit RMB 494b. The survey finds that the IT industry has made a very important contribution to China’s economic growth, while software as a vital factor of the IT industry has become a catalyst enabling the economic growth and creating economic opportunities. Chen believes that the innovative, widened application of software in traditional industries is the key to the development of software industry in the future. Chinese Text

Internet

CNTV to Be Launched

Sources said that CNTV, China’s state-level Internet-based TV, is going to be launched the next week, using the domain name CNTV.com. CNTV is positioned to be an approved national comprehensive Internet video public platform, providing interactive audio-visual services and integrating Internet features with TV features. The launch of CNTV will produce profound influence on the network video industry. Heads of multiple video websites say in an interview with the media that this proves the video market is flourishing, and that they have no intention to compete with CNTV and will adopt a different development strategy. 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.