China should achieve breakthroughs in its information industry over the next five to 10 years in order to establish its position in international competition, said a senior government official with the Ministry of Information Industry (MII).

"We are an international IT power in terms of revenues, but we must try to be strong in technologies," said Xu Shuncheng, director-general of the Department of Science and Technology with MII.

At Thursday's first China International Information Industry Technology Exhibition (ITEX China 2001), Xu said that although the IT industry was the biggest sector of the national economy -- with revenues exceeding 1,000 billion yuan (US$120 billion) -- its global share of the market is quite meager.

Software and information services, one of the fastest growing IT sectors in China, accounted for only about 1.2 per cent of total revenues from the worldwide IT market.

Xu pointed out that it is quite likely that China would independently develop core IT technologies with a concentration of its capital and talent resources.

Software may become one sector to see initial IT breakthroughs, according to Guo Xiancheng, a software expert.

He said Chinese software vendors could discover opportunities in five areas: Internet-based software solutions including e-commerce and e-government; Linux operating systems (OS) and related applications; development of middleware, which is the basis for large-scale software development; embedded software solutions in consumer electronics; and information security products.

Since most of these areas are closely associated with national security, domestic enterprises would enjoy many opportunities, and in turn, access to big markets, Guo noted.

Chinasoft Network Technology Co Ltd, one of the biggest State-controlled software businesses in China, has made progress in developing operating systems, and office-government applications.

Its COSIX Linux operating system has become the most favored OS in China.

The company is also in an instruction period for initial public offerings and may become a listed firm next year so as to raise funds for its future development.

The four-day event, held by MII, will offer seminars on IT industrial innovations, high-tech research achievements, third-generation (3G) mobile communications and opportunities for IT applications in the 2008 Beijing Olympics.

(China Daily December 14, 2001)