ICT development report of China

1. ICT development report of China Embassy of the People′s Republic of China in the Republic of India

2. 1 5 The basic conditions and trends of China's ICT Conclusions and suggestions 3 Advantages and challenges of China's ICT 4 The strategy of China's ICT Contents 2 A case: China International ICT Innovation Cluster

3. The basic conditions and trends of China's ICT 1. An overview of the development of China's ICT 2. The development of electronic information industry 3. The development of the communications industry 4. The trends of China's ICT development

4. An overview of the development of China's ICT ■By the end of 2006 -Fixed telephoneusers:367.812 million (172 times in 1980) -Mobile phoneusers:461.082 million ( the 1st in the world) -Internetusers:132 million ( 2st in the world) -Communications cable: 4.26 million km -Color televisionsets:837 million units ( 1st in the world) ■In the 26 years, the average growth rate per annum is above 20%,which is mostly 2.5-3 times of GDP growth rate user of communication industry 数据来源：中国信息产业部

5. Achievements An overview of the development of China's ICT third generation mobile systems From Core to user terminal POF FSVD X series international technical standard high-end router of Telecommunicationlevel TD-SCDMA Standards and System

6. The development of electronic information industry Trillion RMB ■The scale of the industry has continued toexpand -In 2006, the income reached to ¥ 4.75 trillion, up 23.7% -The added value reached ¥ 1.1 trillion, up22.1% -The scale of the industry ranks aheadin the various sectors of the national economy ■Major product output increase -In2006, mobile phone production reached to 480 million, up 58.2% -Microcomputer 93.36 million, of which laptops 59120000 -Color TV 83.75 million units, of which the flat-panel televisions rapidly grow , LCD TV output 94.5 million units, an increase of over 100 percent； -IC 33.6 billion, an increase of 26.3%。 In 2006 the scale of the industry In 2006 the Major product output 数据来源：中国信息产业部

7. The development of electronic information industry ■Economic benefit grow fast -In 2006,the industry realized profits tax of ¥ 240 billion,up22% ■Software grow steadily -In 2006 ,software industry created ¥ 480 billion of profits, ¥ 183.8 billion of added value ,up 22% -System integration income increased over25% 2006 January-November electronics and information industry completion of major economic indicators

8. The development of electronic information industry ■Foreign trade increases -In 2006,the industry-wide import and export volume totaled 651.7 billion US dollars, accounting for 37% of the country's total foreign trade -Exports of 364 billion US dollars,up35.7%-Imports of 287.7 billion US dollars ,up30.5% -China's import and export volume accounts for more than 15 percent in the global electronic information products. A number of products is the No. 1 in the world market ■Businesses increased their strength -In2006,there are 29332 enterprises above designated size,1877 more then in 2005,16958 of manufacturing industry,12374 of Software industry -Top 100 electronics and information enterprises created an income more than ¥ 1 trillion , a profit of ¥ 20 billion and a tax of over ¥ 28 billion largest 10 export products of electronic information products in 2006 2001-2006, the volume of manufacturing growth in the number of enterprises 数据来源：中国信息产业部

9. The development of electronic information industry ■investment in fixed assets expanded -In 2006, the projects over ¥ 105 millioninvested ¥ 206.8 billion in fixed asset, up 41%. -2522projects started,340 more then in 2005 -Fixed assets added ¥ 135.3 billion ,up 30% -Communications equipment and electronic components become key investment areas ■More technological innovations - In 2006, new products created more than 20% value of the entire industry , 0.2% more than in 2005 -The industry-wide R&D investment was more than ¥ 90 billion，the input in R&D accounted for over 5% of sales proceeds in most top electronic information enterprises ■The level of informatizationraised -In 2006, mobile phone penetration rate reached 35.3% -Every 100 families had 35 computers and 140 color TV In 2006 the major sectors and the growth rate in fixed assets investment 数据来源：中国信息产业部

10. ■Information technological progress speeded up, and the industrial structure is upgrading ■The market of New components increased. ■The upgrading of the Telecom operators' network and rural communication promoted the rapid development The development of electronic information industry ■Foreign-funded enterprises intensified the competition in the low-end market ■Components industry's competition effected the machine industry ■Service providers and marketing channel dealers entered the competition ■Inter-country competition is becoming fierce ■In 2006,the above-scale industry realized a growth of 24% in both sales revenue and the added value ■The manufacturing sector stayed in the leading level of the national industry. ■The proportion of high-end products increased. ■The foreign-funded enterprises played a important role in the industry ■Localization and R&D transfer are obviously the trends of Multinational corporations investing in China. ■Local enterprises speed up the pace of international expansion

11. The development of the communications industry In 2006 the communications industry indicators 数据来源：中国信息产业部

12. The development of the communications industry In 2006 the communications industry indicators 数据来源：中国信息产业部

13. The development of the communications industry ■Fixed telephone users : 367.8 totally -251.4000 urban -116.4 million rural ■Mobile phone users : 461.1 million ■mobile group data users ：138.1 million 数据来源：中国信息产业部

14. 2003 2004 2005 2006 2007 联 互 网 发 展 4280万 6430万 9070万 1740万 12200万 13700万 9400万 7950万 11100万 16200万 internet users Broadband users The development of the communications industry • By2006,the total number of Internet users reached 137 million in the mainland of China ,10.5% of the total population • 75.9% Internet users have broadband ,90.7 million with XDSL、Cable Modem, 27.1 million with leased line • 41.2 million Broadband computers , 69.4% of all internet computers 数据来源：中国信息产业部

15. Income Business structure Investment Regional structure The development of the communications industry ■growth rate of income in 2006 -Mobile Communication: 18.5%(47.3% of all)、 -Fixed data communication: 24.6%(7.9% of all) -Fixed local telephone: -2.62% -Long-distance telephone: -0.99% ■Mobile data services realized 21.6%of the mobile communications business income ■New telephone users in 2006 -Fixed telephone : 17.4million -Mobile phone : 67.7 million ■The mobile phone users was nearly 100 million more than fixed users ■new internet users in 2006 -Dial-up:-9.175 million -Broadband users :14.549 million ■Broadband users was nearly twice the Internet dial-up users ■Regional growth rate in 2006 eastern :11.0% Central:14.5% Western:12.3% northeastern:11.0% ■The development of the central and western is accelerating ■Theinvestment growth in2006 -Fixed assets invested ¥ 218.69 billion, up 7.5%. ■Priority of investment -Mobile communication operators in network expansion and optimization support -Fixed telecom business investment the access network connection ■the investment returns improved. 数据来源：中国信息产业部

16. China ICT development trends Machine Communication Age Era of people-to-machine communication New generation of CT 3G Tech The three networks Telecommunications networks, computer networks and cable networks are moving toward integration Next Generation Network IP network benefits the business division and integration of network evolution

17. China ICT development trends From the traditional circuit-switched to the broadband packet switching Tele-communication network Broadband technology Varied Access modes The third generation mobile communication system on the eve of a business Fewer network layers and more efficiency mobile communication IP Network wireless technology Switching technology Universal use and broadband Combine with routing technology satellite communications network security consider both System security and information security Mobile and Broadband Integrated management and policy-based management Intelligent, mobile and multimedia network management user terminal

18. Case : CIIIC • ■Founded in Jinan City of Shandong province in December of 2006 , China International ICT Innovation Cluster (CIIIC) was approved by Ministry of Science and Technology , Ministry of Information Industry and Ministry of commerce • ■The goal CIIICis to create world-class software, computer, network communications, digital equipment , and integrated circuits industry clusters in china

19. Regional conditions

20. Industrial base and the technology base Industrial base Technology base ■Shandong Province’s GDP is the second largest of China, 10% of the total ■Shandong Province has a solid information industry whose output account for 7.3％ of China's ■Jinan, capital city of Shandong Province, one of the China's financial centers, is one of China's "economic power Top 50" cities ■Jinan City, pilot cities of China's "city of information", "E-commerce and modern logistics," and "information industry", "smart traffic," and "China's outsourcing service bases city", has a good base of information industry ■CIIIC, located in the eastern industrial zone of Jinan City , has invested nearly ¥ 10 billion in the infrastructure construction. ■Shandong Province has 104 universities and colleges (e.g.SDU,OUC) .Jinan City, science and technology power ranked 8st,has 59 colleges and universities and 487,100 students in school, There are plenty of scientific and technological personnel ■CIIIC has 3 national key laboratories, 93national or provincial enterprise technology centers, 29 Technical Research Centers and 702 high-tech enterprises ■Jinan, China's model city of Intellectual Property Protection, has built a long-term institution for Intellectual Property Protection

21. The overall pattern ■An accumulation area of IT industry meeting with international standard■An advantageous area integrating international IT industry resources■A core area realizing indigenous innovation in IT industry.

22. Insurance ■Government support the building of CIIIC with both finance and government procurement ■enterprises and research centers will be rewarded according to related policies. Policy support ■A special fund has been allocated for the industry development.  CIIIC also have a multiple-channel fund system Fund support ■To develop and perfect laws and regulations on IPR protection , CIIIC create a legal environment in line with international practice Legal support ■China's Ministry of Science and Technology, Chinese Academy of Engineering, and Shandong Province jointly set up a National Information Communication and Technology Research Institute Technique support ■Favorable research and living infrastructure have been operating Service support ■A variety kinds of venture capital investment are supported, especially the risk investments and guaranteed loans Finance support

23. Policy Advantage Industrial Policy ■set up industry development funds Project Policy ■tax preference and finance support Land Policy ■provide appropriate land for qualified projects InnovationPolicy ■reward the new products and technology Research Policy ■reward the new research centers Talent Policy ■reward the researchers and managers with contributions Policy

24. Advantages and challenges of China's ICT

25. The strategy of China’s ITC 1. Strategic approach of China's ICT development 2.Purposes and principlesof China's ICT development 3. Development of China's ICT strategic goals 4.The development of China's ICT strategic points

26. Strategic approach of China's ICT development measures Raise the quality and level of cooperation ■Tracking the development of the global ICT industry as the level ■Developing Internet equipments, digital equipments, and special equipments of ICT Improving operating efficiency; reducing operating costs Coordinately developing Four bases for the of ICT industry ■Focusing on the structural adjustment of the four major ICT industrial bases (the Pearl River Delta, Yangtze River Delta and Bohai Bay region, Central, part of the central and western regions) Improving the quality of ICT industry Supporting the own intellectual property inventions such as TD-SCDMA Strengthening the Technology R&D investment Supporting the international ICT enterprises ■Providing financial support, tax incentives, policies Implementing the national strategy of intellectual property rights The establishment of integrated circuits, software, and new components, and other major projects Establishing major projects of HDTV, broadband wireless communications, next-generation network, network and information security, home networking and intelligent terminals Establishing major projects of an automobile computing platforms, agricultural information platform and intelligent transport systems to enhance the social development of the national economy Establishing major projects platforms of information technology services, scientific research platform and service system Focusing on the deployment of important technical fields

27. Purposes and principlesof China's ICT development

28. Development of China's ICT strategic goals Major economic Indicators Competitiveness Goals Coordinated Development Goals Continuing to strengthen the capacity of communication in rural areas and the central and western regions Relying on national electronic information industry bases and industrial districts, forming the distinct development of industry structure between eastern, central, and western regions. Allocating reasonable radio frequency resources to meet the basic needs of the coordinated development of various radio business. By 2010, the total income of China's ICT industry reaches ¥ 10 trillion with an annual increase of 17.6 % The telecommunications industry revenue reaches ¥ 886 billion with an annual increase of 7.6%. Electronic information industry sale reaches ¥ 9 trillion with an annual increase of 18 percent. Postal service income reaches ¥ 99 billion with an annual increase of 8 percent. By 2010, China's information industrial added value reaches ¥ 2.6 trillion with an annual increase of 15 percent covering 10 percent of GDP. The proportion of electronic information products in country's exports remains at about 35%. By 2010, the overseas telecommunications services market is expanded, the competitiveness of basic telecom operators and enterprise management capabilities are greatly enhanced The core industry size of electronic information such as software, integrated circuits, new-type components increase by fourfold Extending Industry Chain to upstream; strengthening capacity of components, materials, and special equipments; Gathering resources and forming a number of globe-influential industrial bases and industrial districts Initially forming capable monitoring system to adapt the development of the information industry; improving the management capacity Innovation Goals Initially forming the technological innovation system based on enterprises; Cultivating large number of innovative enterprises with independent intellectual property rights Increasing the number of business patents of communication Approaching to the advanced international level on key technology R & D capability; Significantly improving the transitional rate of the technology; greatly enhancing of the international standard-setting influence. Service level Goals By 2010, the number of telephone users will reach 1 billion, of which fixed telephone users reached 400 million, representing a penetration rate of 30%, mobile phone users reached 600 million, representing a penetration rate 45% The number of Internet users reach 200 million, representing a penetration rate of 15%. The quality of the postal delivery get further improved and the annual letter volume reaches 14 billion.

29. The development of China's ICT strategic points Direction and development measures Strategic points IC HDTV

30. The development of China's ICT strategic points Direction and development measures Strategic points

31. The development of China's ICT strategic points Direction and development measures Strategic points

32. The development of China's ICT strategic points Direction and development measures Strategic points

33. The development of China's ICT strategic points Direction and development measures Strategic points

34. Conclusion and Suggestion Conclusions Suggestions ●Information technology and economic globalization are intertwined and promote the deepening of the global division of labor and economic restructuring, reshaping the pattern of global economic competition ●Internet accelerates the ideology variety and cultures of mutual impacts, becoming the new carriers of information dissemination and knowledge proliferation. ●E-government plays an significant role in increasing efficiency, improving government efficiency and expanding democratic participation. ●The increasing importance of information security has become the common challenge that all countries face. ●The global digital gap has an expanded trend and the development imbalance is increasing seriously. ●With a clearer goal in the development of information technology, the developed nations are observed to transit to information societies; meanwhile, the developing nations take the initiative to meet the new opportunities brought by the development and strive to keep pace with the trend of the times ●International ICT development is entering the mature and stable period ●The development and utilization level of china’s information resource is not high. ●China's information management system and policy environment have improved significantly ●Toaccelerate the upgrade of traditional industries with information communication technology ●To develop qualified ICT personnel ●To continue to promote e-government, increasing administrative efficiency ●Tostrengthen Internet governance, focusing on information security. ●Toimprove information and communication infrastructure. ●To strengthen international communication and cooperation. ●To take low-cost information technology development path. ●Tomake reasonable development and utilization of information resources in depth. ●Tocontinue to improve China's information management system, policy environment and technical standards

35. Thank You !