Overview
Information technology has long been viewed as an important component of grand scheme for modernization of China. IT industry has become a pillar in economic growth in China. The success of China's IT industry and its prospects for future growth are closely linked to measures taken by government.
Defining direction. The central government have opened the road to rapid development for the whole sector. Since the Ninth Five-Year Plan period began in 1995, the government has stressed "informatizing" the whole country, with attendant commitments to massive investments in infrastructure.
High-tech zones. In these designated areas, high-tech startups could enjoy five years of significant tax breaks.
Seed money. Notable seed money has funded IT-related projects and its related companies.
Tariffs, foreign investment and foreign sales regulations. Initially, foreign companies seeking to sell their products or to manufacture in China faced requirements that they seek Chinese "channel partners" or create joint-venture partnerships. Coupled with tariffs, these requirements encouraged in-country production and transfer of technology to Chinese firms. In recent years, China has reduced such barriers in hopes of joining the World Trade Organization.
Standard-setting. The Ministry Information Industry and other relevant agencies has the power to set technical standards. The standard-setting process can and has been used to ensure that Chinese firms get a large piece of the action.
Chinese government also put out plans for national information infrastructure development.
Government Plan 23
China has initiated what is called ‘Golden Projects’ strategic plan for national information infrastructure building in 1993. This ambitious plan is designed to stimulate the information economy and building administrative capabilities. The goal of this plan is to
1. Build a national information highway as a path to modernization and economic development.
2. Drive development of information technology in China
3. Unify the country by tying the centre to the provinces and by allowing the government to act access ministerial and industrial demarcation lines.
Summary list of the Golden Projects
|
Name |
Project Name |
Stake Holders |
|
Golden Bridge |
National Public Economic Information Communication Network |
Ministry of Electronics, State Information Centre |
|
Golden Card |
Electronic Money Project |
PBoC, Ministry of Electronic, Ministry of Internal Trade, Great Wall Computer Co. |
|
Golden Customers |
National Foreign Economic Trade Information Network Project |
Ministry of Foreign Trade, Customs, Ji Tong Co. |
|
Golden Sea |
|
State Statistical Bureau, PBoC, State Information Centre |
|
Golden Macro |
National Economic Macro-Policy Technology System |
China Ex-Im Bank, Ministry of Finance, State Information Centre |
|
Golden Tax |
Computerized Tax Return and Invoice System Project |
Ministry of Finance, Ministry of Electronics, National Taxation Bureau, Great Wall Co. |
|
Golden Intelligence |
China Education and Research Network |
State Education Commission |
|
Golden Enterprise |
Industrial Production and Information Distribution System |
State Economic and Trade Commission |
|
Golden Agriculture |
Overall Agricultural Admin. and Information Service System |
Ministry of Agriculture |
|
Golden Health |
National Health Information Network |
Ministry of Health |
|
Golden Info. |
State Statistical Information Project |
State Statistical Bureau |
|
Golden Cellular |
Mobile Communications Production and Marketing Project |
Ministry of Electronics Industry |
|
Golden Switch |
Digital 2000 Switch Systems Production Project |
Ministry of Electronics Industry, Ministry of Posts and Telecom |
Source: www.mii.gov
Top-down Government Model 24
The development of the Internet and e-commerce in China is primarily a top-down effort on the part of the Chinese Government. The government played a crucial role in building a national information infrastructure and developing an information economy. All of the telecommunication infrastructure in China would have been impossible without government support. The government initiates improvements in China’s Internet including substantial upgrades to the national backbone capacity of international bandwidth from 18.64Mbps in 1997 to 2799Mbps in 2000, and funding and support for academic and research networks such as CSTnet and CERnet. In the past decade, China has taken a series of actions to improve access to information infrastructure and to promote the use of Internet including the Golden Projects.
Government Internet Policy25
The Chinese government is supportive of Internet development while struggling to control every aspect of China’s Internet. China’s Internet sector is specifically governed by two regulations: Interim Regulations on International Interconnection of Computer Networks in PRC and Measures for the administration of Internet information services. The Interim Regulations specified that all ISPs provide access to the Internet through Interconnecting Networks and Interconnecting Networks connect into global Internet via the gateway administered by China Telcom, which was until 1998 part of former Ministry of Post and Telecommunications.