China's Software Industry Saw 40% Growth in 2002 & 6 Major Obstacles ahead of it

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Last updated at: (Beijing Time) Friday, February 28, 2003

China's Software Industry Saw 40% Growth in 2002 & 6 Major Obstacles ahead of it

Qu Weizhi, deputy head with the Informationization Office of the State Council, introduced in working conference on "Outline for Vitalizing the Software Industry (2002 - 2005)" held in Beijing on February 25 that, China's software industry in 2002 developed by 40 percent over the previous year, coupled with a sales value hitting 110 billion-yuan.

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The working conference on "Outline for Vitalizing the Software Industry (2002 - 2005)" held in Beijing on February 25, was co-sponsored by Informationization Office of the State Council, State Development Planning Commission, Ministry of Information Industry, State Economic and Trade Commission and Ministry of Science and Technology. Qu Weizhi, deputy head with the Informationization Office of the State Council, introduced that, China's software industry in 2002 developed by 40 percent over the previous year, coupled with a sales value hitting 110 billion-yuan. Besides, in the coming years the software industry is forecast to maintain a growth rate of 30 to 35 percent.

In the meantime, Qu Weizhi pointed out six major factors hindering the long-term development of the software industry. First, the software industry in China exerts a weak international influence and presents a small industry scale, shown as less than two percent of sales proportion in the global software market.

Secondly, the software industry possesses a meager one-third share on the domestic market.

Thirdly, software enterprises at large lack production scales as well as ability to conduct technological innovation.

Fourthly, the domestic software industry is weak in development of basic and large application software products. Almost all application software is in the monopoly of foreign products in such trades as banking, civil aviation, securities and metallurgy.

Fifthly, the ranks of software intellects call for further expansion and optimization of intellects' structure.

Sixthly, problems including scientific research divorced from industry while industry severed form application have not yet been effectively solved.

In line with the present condition and existing gaps, the Chinese government has in recent years formulated and published a series of policies and measures, giving energetic support to the software development.

By PD Online Staff Zhu Lizhen

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