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CA Enters Chinese Market via Alliance
China's leading software maker Neusoft formed a strategic alliance with US-based Computer Associates (CA) over the weekend and accepted the latter's biggest investment in Asia, US$40 million.
The Shenyang-based Neusoft is China's largest provider of enterprise software products and services, while CA is the world's third largest software vendor.
The alliance with Neusoft is CA's prime strategy in exploring the Chinese market, said Charles Wang, chairman of CA.
Established at Northeast University in Liaoning Province, Neusoft has controlling shares in the software markets of telecom, insurance, banking, power and government management.
Neu-Alpine, one of Neusoft's subsidiaries, went public in the Shanghai Stock Exchange five years ago and is still the largest software firm listed.
"The alliance with CA will help Neusoft go abroad and establish its reputation in the overseas market," said Liu Jiren, head of Neusoft.
"CA is fully committed to helping the Chinese software industry become a more productive and active participant in the global economy," said Wang.
This alliance marks the beginning of a new era in which software developed and manufactured in China will be marketed and distributed globally, he said.
Software is the weakest link in China's information technology industry.
Compared with the hardware sector, which includes a group of international brands like Legend, software lags far behind.
The yearly revenue of the software sector is only one-fifth that of hardware, according to the Ministry of Information Industry.
Most of the domestic software market has been explored by overseas companies. The country has yearned for its own software giants, as software is one of the industry's core components and with the most income potential.
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