China's software industry gets help

China aims to increase the number of software export bases to up to 15 by 2010 to boost the fledgling software export and outsourcing industry, said Yi Xiaozhun, vice-minister of commerce.

China currently has six software export bases, in Beijing, Shanghai, Tianjin, Dalian in Liaoning Province, Shenzhen in Guangdong Province, and Xi'an, of Shaanxi Province.

Yi said: "Exports of software and information services will play a leading role in the service sector in China." China's service trade last year was worth US$158.2 billion, accounting for 10.9 per cent of total trade, far lower than the world average of 19 per cent.

He said the Chinese Government had already set a goal of raising service trade turnover to US$400 billion by 2010.

Lou Qinjian, vice-minister of the information industry, said traditionally China's software industry focused on domestic consumption, which had led to a relatively low level of software exports.

According to the Ministry of Information Industry (MII), software exports will reach US$12.5 billion by 2010, more than triple the figure for 2005, which was US$3.59 billion.

"Software outsourcing is a shortcut that will allow the Chinese software industry to catch up with developed countries," said Yi.

He said that by getting involved in outsourcing, Chinese software companies would absorb cutting-edge practices and products.

Beijing-based research house Analysys believes China's software outsourcing market reached 2.6 billion yuan (US$324 million) in the first quarter of this year.

Source: China Daily