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 | Thursday, April 27, 2000, updated at 16:13(GMT+8) | ||||||||||||
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IBM bid US$12 Million to Help Xi'an SoftparkHenry Chow, chairman and chief Executive officer of IBM Greater China Group, was besieged by reporters last week in Xi'an, the capital of Shaanxi Province, where Chow signed a contract with Xi'an-based Times Information Industry Company (TII).Under the project, a new US$12 million world class applications service platform (ASP) will be provided to support the city's information technology industry. An ASP is needed to integrate ICP (Internet content provider) and ISP (Internet service provider) software programme. Chow said the platform will play a big role in helping the fledging Xi'an Softpark, a government-backed high-tech development zone, attain efficiency and meet international standards. "The project has created a solid base for development of Xi'an's software industry which will be of national significance,'' said Zhang Jianqing, president of TII. The investment was regarded as a far-sighted move at the high-profile Investment and Trade Forum. The forum focused on the central government's programme for developing the country's west. "These kinds of investments provide a doorway to the international community for the software industry in the west,'' Chow said. The executive, with his 32 years of service with IBM, said his company's investment in the landlocked west resulted from economic prospects there. IBM decision-makers are paying more attention to the west, where they believe IBM can develop long-term interests. The actual availability of a future market, rather than the government's preferential policies, led IBM to consider the investment. Four years ago, Chow visited the country's hinterland. After that, he guided his firm's consideration of this less-developed region. Chow, cited as an "Outstanding Businessmen'' in Taiwan in 1990, has a long-term strategy for tapping the western region's potential. While many multinational conglomerates are still taking a wait-and-see attitude towards the west, IBM has recognized a potential market there, especially for high technologies. Prior to signing onto the project, IBM had established branches in Xi'an and Chengdu, capital of Sichuan Province. IBM is regarded a significant contributor to the cities' tax base and reliable local corporate partner, sources said. Chow said a global company needs three things to be in place to pursue long-term business opportunities in inland areas: quality professionals, experienced local partners and government support. IBM has found these in Xi'an and Chengdu. In China's northwest, a responsible company should not base its value merely on sales volume and profit rates, Chow said. Long-term development strategies are most important, he said. "The development plan for the region should look ahead five to 10 years in order to succeed at last,'' said Chow.
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