The bases lie in 10 major cities of Beijing, Shanghai, Dalian, Chengdu, Xi'an, Jinan, Hangzhou, Guangzhou, Changsha and Nanjing. The decision was made after the two departments examined all of the country's 48 existing software industrial parks.

The industrial bases are expected to become the country's software development, production, service and export centers.

According to an official document issued by the two departments, all 10 software bases are located next to universities and scientific institutions as well as some major software enterprises.

The industry is still very weak compared with the country's status as the third largest PC producer in the world.

Last year software exports were only one 10th of that of India, the world's second largest software making country.

According to a document issued by SDPC, most Chinese software enterprises are small, and their quality and service need to enhance. The CMM (capability maturity model) is presently the most popular international software standard. But only a few Chinese software companies have received the certification.

The software industrial bases are expected to help overcome these problems. The SDPC and MII promised to make a series of preferential policies to promote the healthy development of these bases.

The State will invest in the bases to establish and support communications networks, software research, infrastructure for software testing and talent cultivation. National support will also be given to promote venture capital investment and the establishment of administrative service systems. The two departments will exercise macro-control over the bases. They will also encourage software enterprises in the 10 industrial bases to become publicly listed.

(People’s Daily 08/13/2001)