By the year 2005, Beijing will have the country's largest, as well as one of the world's top, comprehensive software industry bases. The software industry is already a pillar and a leading force in the knowledge economy, said Beijing Vice-Mayor Lin Wenyi yesterday at a press conference.

Beijing will by that time be the first choice for people who want to develop or buy software, she said.

The Chinese capital became the country's most important industrialized base for software over the past five years. Two- thirds of China's exports of software in the period were developed and made in Beijing, while over one-third of the country's software output value and sales revenue were generated in the city.

More than one-third of the companies and personnel engaged in China's software industry are in Beijing.

According to the new preferential policy package, companies recognized by the municipal government as involved in software will be automatically recognized as high-tech enterprises as well, enjoying all the preferential policies open to such companies in the country.

Beijing recognized a total of 221 software companies last year, the equivalent of one new comer for every one and a half days.

The municipal government also promised to enhance its protection of intellectual property by further strengthening preventative controls for pirated software.

As for the integrated circuit industry, the official government document reaffirmed the four major preferential policies Beijing promised last year, which have so far not been matched in other Chinese regions.

(China Daily 03/01/2001)