CHINA INFORMATION TECHNOLOGY LAW NEWSLETTER
Vol. 4, No. 11- August 6, 2003
TOPICS THIS ISSUE:
- Crackers Disable Chinese Site
- Import Of Information Technology Products Rose In Shenzhen
- Rising Suggests 80% Of China's Websites Are Insecure
- Tech Stocks Boom In China
- China To Issue 3g Licenses Before Year End, No Operator To Use Td-Scdma
- Chinese Mainland Integrated Circuit Consumption To Grow At 20%
China Litigation and Arbitration
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Crackers Disable Chinese Site
The People's Daily newspaper reported that Web site BlogChina.com seemed to have been knocked out for three days by a flooding denial-of-service (DOS) attack. The website has since been turned back on, but the closure of the site coincided with the planned global hack attack recently by many crackers around the globe. Fang Xingdong, who started the website, was quoted as saying that the attack was provoked by his outspoken attacks on online porn.
(Source: China Internet Update)
Import Of Information Technology Products Rose In Shenzhen
According to statistics issued by the Shenzhen Customs, in early 2003, information technology products import at Shenzhen port increased rapidly. The total import value reached USD13.65 billion, an increase of 52% from the same period the previous year. Three factors helped in the tide. First, thanks to global IT manufacturing industry's transfer to China, import for processing trade grew rapidly. Shenzhen and surrounding areas also received much IT industry investments, which results in the fast growth of information products processing trades there. In the first half of this year, import for information products processing trade reached USD8.05 billion, an increase of 44.8% from a year ago. Second, as a member of the WTO, China further adjusted tariff policies on imported information technology products in 2003. Ninety kinds of products enjoy zero tariff, which adds the total number of tariff-free products to 213, 83% of the total. The tariff level also reduced from 3.5% in 2002 to 1.5% in 2003, which greatly stimulated general trade import. In the first half of this year, the import value of general trade totaled USD4.18 billion, jumped by 65%, a net increase of USD1.6 billion. Third, tariff-free zone and logistic industry developed rapidly in Shenzhen. Many global logistics giants settled down in Shenzhen City and its tariff-free zone, which led to the sharp increase of information technology products import.
(Source: SinoCast China Business Daily)
Rising Suggests 80% Of China's Websites Are Insecure
Rising, the largest Internet security product vendor in mainland China, is quoted by Interfax as saying that 80% of domestic Chinese websites have fairly "big holes" in their networks at present, which would make it very easy for crackers to launch attacks and then even illegally take over the website. Fittingly, Rising has launched a free network equipment scanning service for all domestic enterprises and administrative units, most of whose websites are still vulnerable.
(Source: China Internet Update)
Tech Stocks Boom In China
The share prices of China's top three Internet portals have risen to over 20 times the price they were a year ago. Sina.com, NetEase.com and Sohu.com are now planning to exploit the bullish market mood, and issue convertible bonds to raise over US$280 million of fresh finance between them. Analysts have speculated that the companies could also embark on a series of acquisitions to fuel further growth. The boom is partly due to hopes that new SMS services will take off, and partly due to increased Web traffic and advertising revenue arising because people stayed at home during the SARS crisis, analysts have suggested.
(Source: China Internet Update)
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China To Issue 3g Licenses Before Year End, No Operator To Use Td-Scdma
China will issue third generation (3G) licenses before the end of this year, indicating none of China's four major telecom operators will adopt the TD-SCDMA standard as the home-grown standard will not be available by that time, the China Business Post reported.
TD-SCDMA, which China's Datang Mobile Communications Equipment Co is developing with Germany's Siemens AG (NYSE SI), is competing with WCDMA and CDMA 2000 to be adopted as the country's 3G standard.
The newspaper quoted Jiang Hai, a telecom analyst with China Minzu Securities, as saying if the 3G licenses are issued before the end of the year, it will take 4 to 5 years for the TD-SCDMA standard to appear in China's mobile telecommunications market.
It quoted Tang Ruan, Chief Operating Officer of Datang Mobile Communications Equipment, as saying if the 3G licenses are issued by the end of next year, TD-SCDMA standard will grab 25% of China's telecom market share, which will bring the company profitability by year 2006.
Datang Mobile Communications Equipment will invest another 800-900 million yuan in the research and development of TD-SCDMA within the next two years, and eventually raise this figure to 1.1 billion yuan if the standard is used commercially in year 2006, Tang said.
The Chinese government will consider protecting this "home-grown" standard when issuing 3G licenses, Tang added.
The newspaper said so far, a test platform for commercial use of the TD-SCDMA standard has not yet been established, while terminal equipment will not be developed until the middle of next year.
China's fixed-line operators, China Telecommunications Corp (China Telecom) and China Netcom Communications Group (China Netcom), are being urged to adopt the WCDMA standard for their future wireless networks, in the run up to the issue of 3G licenses in China, the China Business Weekly reported in April.
The newspaper quoted Petri Hautakangas, head of Nokia Networks (China) 3G solutions, as saying WCDMA is the most economical solution for operators, and is the best choice for China Telecom and China Netcom.
It also said although no operators have announced which technology standard they will choose, it is widely believed China Mobile Telecommunications Corp (China Mobile) will upgrade its current GSM networks to WCDMA, while China United Telecommunications Corp (China Unicom) will upgrade its CDMA1X network to CDMA2000.
(Source: AFX-Asia)
Chinese Mainland Integrated Circuit Consumption To Grow At 20%
The Chinese mainland's demand for integrated circuit (IC) technology is expected to grow at 20.3% annually between 2003 and 2005, according to a report published here recently. The report is jointly published by two of Global Sources Lt.'s China-based electronics publications, Electronic Engineering Times-China and Electronic Buyers' News-China. The report indicates that in 2003, the Chinese mainland's manufacturers will likely consume 41.1 billion ICs valued at US$30 billion and imported technology is expected to account for 84% of the total volume of China's IC demand in 2003. Commenting on the report, publisher of Electronic Engineering Times-Asia and Electronic Buyers' News-China Mark Saunderson said that China's business potential for semiconductor vendors remain unparalleled. The 143-page Electronics Industry Outlook also highlights current trends within China's IC design, manufacturing, packaging, discrete and passive component manufacturing, and distribution business. It is reported that China's Ministry of Information Industry forecasts sales of China's electronic products to increase 17% to reach US$198 billion in 2003. Saunderson said the "market outlook remains extremely attractive for technology vendors around the globe." China's IC manufacturing sector consists of 10 key wafer manufacturers, 18 key IC packaging firms and nearly 400 IC design houses. The number of IC design houses is growing rapidly in China. According to the report, China's domestic IC manufacturing sector is growing very quickly, but it is in its initial stage. The report says ICs designed by China's design houses are used in consumer electronics products, telecommunications, networking equipment and data communications, computer products, industrial control and automotive electronics. Global Sources serves a growing community of over 385,000 active buyers in over 230 countries and regions. It also has 17 specialized websites.
(Source: Xinhua News)
The China Information Technology Law Newsletter is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
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