CHINA INFORMATION TECHNOLOGY LAW NEWSLETTER
Vol. 1, No. 16 - December 19, 2000
TOPICS THIS ISSUE:
- Legend Announces Laptop Center Move to Shanghai
- Tianjin to Promote Information Technology
- Great Wall Computers Expand Into Education
- First Broadband Information Community to Be Constructed
- China to Launch 3G Mobile Network by 2003
- China's Electronic Information Sector Reports Strong Growth
- Taiwan to Ease Restrictions
- 8848.net Plans a Spin-off
Legend Announces Laptop Center Move to Shanghai
The Legend Group has announced plans to move its center of operations of its laptop computers to Shanghai from Beijing. The move was necessitated by the higher availability of supplies in Shanghai. Legend also has plans to organize a wireless technology research center in Shanghai.
Legends has also leased an 80,000 square meter factory space in Pudong to set up a new computer production base, which will be their third factory on the mainland. The two other plants are in Beijing and Guangdong. The factory is needed to service the increasing demand for Legend computers in the eastern part of China.
This third production plant will be finished by next June. It will have a production capacity of 1.5 million computers per year. With the addition of this third factory, the group will have a yearly production capacity of 6 million units.
Shanghai has created a solid information industry infrastructure, including a broadband network, and has a solid base for development of IT technologies.
Legend has owned the highest market share in the Chinese computer market for four years running.
(Source: South China Morning Post, Xinhua News Agency)
Tianjin to Promote Information Technology
Tianjin plans to push ahead its information project during the 10th "Five-Year Plan". The city hopes to develop the IT industry in order to help improve industrialization and modernization of other trades, according to sources close to the First Symposium for Construction of a National Information Port, which is now underway in Tianjin.
The whole project is to be implemented in three phases: The first step is to build a broadband access network. The second step is to set up two top-level service platforms for information exchange and e-business. The final phase is to create 21 information application systems in such areas as political affairs, social insurance, medical services, education and healthcare.
(Source: People’s Daily)
Great Wall Computers Expand Into Education
The Great Wall Computer Corporation recently released two new brands of computers that are specifically designed for education.
The two series of computers are in response to the rapid development of the Internet in China, which will contribute to an increased interest in on-line education.
With the two new series, the company hopes to realize its goal of selling 1 million business computers next year.
(Source: People’s Daily)
First Broadband Information Community to Be Constructed
Shenzhen Overseas Chinese City Group and Shenzhen Telecom Bureau have recently signed an agreement to build a digital large-scale demonstration community equipped with broadband information service facilities.
By jointly injecting 300 million yuan into the "city" construction, the two parties will cooperate to finish within a period of three years the construction of a broadband network platform using mmhz optical fiber to cover an area of five square kilometers. Afterwards, the "city" will be put into operation. Finally, the two parties will jointly conduct commercial promotion for the construction of broadband networks in other communities.
As the first demonstration community with a broadband network supported by China Telecom, the project will enjoy the service of a 2.5 GBPS high broadband interactive network.
(Source: People’s Daily)
China to Launch 3G Mobile Network by 2003
China is expected to construct third generation (3G) mobile telecommunications commercial networks around 2003, officials from the Ministry of Information Industry (MII) disclosed.
Economic Information Daily quoted the officials as saying that China will develop its own 3G mobile telecom equipment for the nation's mobile telecom network.
China has made great achievements in 3G mobile telecommunications, and its 3G mobile telecom standard TD-SCDMA has been recognized by the International Telecommunications Union, according to a meeting of the 8/1 Task Group held recently in Beijing.
If everything goes smoothly, China's TD-SCDMA will have the ability to compete with European W-CDMA and American CDMA2000 standards.
Initiated by telecom operators including Datang Telecom Technology Group, China Telecom, China Unicom, China Mobile, Siemens, Motorola and Nortel Networks, the TD-SCDMA Technology Forum was officially launched in Beijing recently.
According to the organization, mobile telecom operators, manufacturers and research institutes will join their efforts to promote China's 3G mobile telecom technologies.
According to industry insiders, a unified standard system will not come out until the middle of next year. All telecom operators are beefing up their efforts to get prepared to be up to the new standard.
(Source: Economic Information Daily)
China's Electronic Information Sector Reports Strong Growth
China's electronic information sector has hit its target for the year two months before the start of the new millennium. The high growth rate is anticipated to continue for the foreseeable future.
Li Zhiming, director of the Department of Enterprises Restructuring and Operation, said the electronic information sector has generated a total output of RMB 809.9 billion (US $97.8 billion) in the January through October period, which already surpassed the full year target of RMB 800 billion (US $96.62 billion). "The increase of basic infrastructure investment, information flow and the western-development strategy have played major roles in fueling growth," Li said.
The most significant growth areas were personal computers and telecommunications products, while traditional electronic products like color TVs and VCD players have suffered negative growth in the period, according to Li.
The industry is also suffering from insufficient provision of components. Domestic electronic component manufacturers still focus on low-end products.
The United States and Japan are still China's major export destination for electronic information products, while exports to South America and Russia have also contributed to exports of RMB 150.55 billion (US $18.18 billion) in the first 10 months.
Although exports reported 44.4 percent growth compared with the same period last year, the growth rate has already slowed down, Li said.
(Source: People’s Daily)
Taiwan to Ease Restrictions
Taiwan is expected to soon ease restrictions on high technology investment on the mainland to improve Taiwanese IT companies’ competitiveness.
The Taiwanese Ministry of Economic Affairs will probably end bans on production in China of numerous IT products, such as advanced personal computers, semiconductors, and liquid-crystal displays, when the ministry reviews its policy on China investment.
Taiwan is expected to maintain its ban on any investment in the mainland’s infrastructure.
Laptop computer makers are beginning plans to build factories in China in anticipation of the new policy.
(Source: Muzi LatelineNews, The China Times)
8848.net Plans a Spin-off
Chinese e-commerce firm 8848.net announced Wednesday, December 13, that it would concentrate on business-to-business trade and spin off a separate company to handle consumer goods.
Chief Executive Officer Zhi Tan said the aim was to help both sides of the business, owned partly by Japan's Softbank Corporation, achieve profitability faster.
The reorganization follows dashed plans by 8848 to become the first Chinese e-commerce player to list on Nasdaq, and illustrates a more focused business approach by Chinese dotcoms since the Internet bubble burst this year.
"In order to be the leader in both areas we decided to separate the businesses," Tan told reporters. "The businesses have two different sets of customer bases," he said. "The marketing approach is different too."
The split will formally take effect on January 1.
Tan said 8848.net will maintain its original ownership structure. More than a dozen foreign companies - including Softbank and Boston-based media group IDG - hold a majority stake and management holds the remaining shares.
The Amazon.com-style retail company, selling everything from books to electronics, would be called My8848.net, Tan said.
8848.net will be a minority shareholder in My8848.net, and undisclosed domestic Chinese investors would take the bulk of the company, Tan said, adding that he would remain CEO of 8848.net and sit on the board of My8848.net.
8848.net started last year as a consumer goods e-commerce site, but early this year introduced business-to-business operations that have become the bigger earner and now comprise 80 per cent of total revenues, Tan said.
(Source: People’s Daily)
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