To boost the development of the country's information technology industry, the Ministry of Information Industry (MII) is going to set up several electronic information industry bases this year, said a MII senior official.

"With the establishment of such bases, we hope that China can develop into an internationally competitive electronic information powerhouse instead of just a manufacturing centre," said Wang Jianzhang, director of the Comprehensive Planning Department with the MII.

A panel led by MII's minister Wang Xudong has already been set up to work on the issue, he said.

The ministry began preparing for the launch of the bases in late 2001.

Sources close to the MII say the bases will focus on the development of mobile telecommunications, digital TV, software and semiconductor technologies and products. Preferential policies will be granted to the bases to foster their development, according to the sources, but details are not currently available.

"As it stands, there are about eight provinces and cities that have met our requirements for establishing the bases," Wang said. But he didn't elaborate on how many of the bases are being planned.

Analysts believe that the bases will help China to cultivate a fertile environment for self-owned leading technologies, which is key if China is to become more competitive.

"We're developing rapidly, but we are not strong enough to seek a firm foothold in the international market right now," Wang said.

MII figures indicated that the country's sales of electric information products reached 1.88 trillion yuan (US$226.5 billion) last year, up 34 percent from the previous year. Meanwhile, exports of electric information products surged 53.2 percent to US$141 billion on an annualized basis, accounting for almost one third of the nation's exports.

Last year, there were eight firms whose sales surpassed 20 billion yuan (US$2.4 billion) and one exceeded 70 billion yuan (US$8.4 billion). Best sellers included handsets, other mobile telecommunications-related products, color TVs and switching machines.

In another development, Wang said the MII will also outline development schemes for 23 special IT sectors in its Eleventh Five-Year Plan (2006-2010). The sectors will include fields like digital television, mobile telecommunications and automobile electronics. A draft blueprint for the projects is likely to be finished at the end of this month or early next month, he said.

(China Daily August 16, 2004)