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China's Software Industry Should Go Abroad

Information Industry Minister Wu Jichuan pointed out recently that software and integrated circuits (IC)--two key sectors in the information industry--must develop at great speed to keep up with the pace of international development of the IT technology. The Chinese software industry must go abroad.

Domestic enterprises must improve their designing ability, says Wu, because it is the key to the IC level. Meanwhile, as the design of ICs is closely related with the overall manufacturing of electronic units, coordination is important for achieving the best results.

China is now actively preparing for accession to the World Trade Organization (WTO), so the development of the IC industry should be oriented to both domestic and international markets. At the same time, cooperation and coordination with foreign IC production lines and manufacturers of electronic equipment should be strengthened.

The software industry, says Wu, is different from other newly emerging industries. The development of technology for computers, networks, and communications, along with the entry of this technology into various sectors, is based on software. In today's Internet era, the development of system-integrated software is accelerating. To connect all the systems, the software industry must enter a new stage.

As an industry with high knowledge content, the software industry must not rely on appropriations and loans as did traditional industries in the past. Instead, it must quickly accumulate capital by going on the market. It can also bring people's intelligence into full play by such means as allowing enterprises to issue shares to their own employees.

Innovation is the key to the development of the Chinese software industry. It must keep up with international standards, conform to new trends of technological development, occupy a commanding position, and come out with genuine products. Therefore, the Chinese software industry must go out of the country in order to expand.

(China Economic Times)

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