ICT in China

Information and
Communication of China
Presented by: Nguyen Dinh Chien
Student ID: P0126557
chienql@gmail.com,
p0126557@mymail.fcu.edu.tw

Main content
BACKGROUND

OVERVIEW OF THE DEVELOPMET
ON THE ICT INDUSTRY OF CHINA

COMPARE TO OTHER COUNTRY

THE RELATIONSHIP BETWEEN ICT
IN CHINA AND TAIWAN

EDUCATION OF CHINA
Main content
BACKGROUND



IN CHINA AND TAIWAN

EDUCATION OF CHINA
BACKGROUND
The Peoples Republic of China is the
largest country in East Asia, with area
about 9,640,821 million square
kilometres.
The Chinas capital is Beijing.
over twelty-two provinces
five autonomous regions,
four directly control municipalities and
two mostly self-governing special
administrative regions are Hong Kong and
Macau.
It is the most populous country with a
population about 1.3 billion.

History of China (1)
Shang Dynasty 1766-1121 BC
Zhou Dynasty 1122-211 BC
Qin Dynasty 200 BC
Han Dynasty 206 BC 220 AD
The Kingdoms Periods 220-80; Jin dynasty
265-420; Northern and Southern dynasty 304-
589; Sui dynasty 581-617
Tang Dynasty 618-907
The Five dynasty and Ten dynasty (907-960)
Song Dynasty 960-1126
Yuan Dynasty 1279-1369
Ming Dynasty 1368-1644
Qing Dynasty 1644-1911
The Republic of China, founded in 1911
On 1 October 1949, Established the People's
Republic of China in Beijing . The Kuomintang
relocated the ROC government to Taiwan,
establishing its capital in Taipei.
Since 1949, the People's Republic of China
and the Republic of China (now widely known
as "Taiwan")

In 1971, the PRC gained admission to the UN
and took the Chinese seat as a permanent
member of the U.N. Security Council. China is
also a member of numerous formal and
informal multilateral organizations, including
the WTO, APEC, BRICS, the Shanghai
Cooperation Organization, the BCIM and the
G-20.
Since 1978, China has become the world's
fastest-growing major economy.
In 2011 and 2012, it is the world's second-
largest economy, after the United States.

Culture of China (1)
Since ancient times, Chinese culture has been
heavily influenced by Confucianism and
conservative philosophies.
Chinese culture has long emphasized a sense
of deep history and a largely inward-looking
national perspective.
A number of more authoritarian and rational
strains of thought were also influential, with
Legalism being a prominent example.
The first leaders of the People's Republic of
China sought to change some traditional
aspects of Chinese culture.
Culture of China (2)
The Cultural Revolution of the 1960s, many
important aspects of traditional Chinese
morals and culture.
Today, the Chinese government has accepted
numerous elements of traditional Chinese
culture as being integral to Chinese society.
Prior to the beginning of maritime Sino-
European trade in the 16th century, medieval
China and the European West were linked by
the Silk Road, which was a key route of
cultural as well as economic exchange.
Industrial development status (1)
From 1949 to 1959, China's technological
relied on the supports provided by the Soviet
Union.
From 1960 to 1978, China was in the abyss of
political movements, economic stagnation,
treachery, fractional fights, and ultimately
human degradation.
From 1979 to 1999, after the Third Plenary of
the Eleventh Communist Party Congress at
the end of 1978, China's economic policy has
become pragmatic alongside with institutional
reforms and restoration.
The 1990s also witnessed a boom of China's
export of manufacturing goods.
In 2005, Industry produced 53.7 percent of the
People's Republic of Chinas gross domestic
product (GDP).
China ranks second worldwide in industrial
output. It is expected to rank first sometime in
2011.
China has become a preferred destination for
the relocation of global manufacturing
facilities.
Overall industrial output has grown at an
average rate of more than 10 percent per year,
having surpassed all other sectors in
economic growth and degree of
modernization.
GDP of Peoples Republic of China from 1952 to 2005
Main content
BACKGROUND



IN CHINA AND TAIWAN

EDUCATION OF CHINA
History of Science and
technology of China (1)
The Four Great Inventions such as
papermaking, printing, the compass,
and gunpowder contributed to the
economic development in Asia and
Europe.
Chinese activity started to decrease in
the fourteenth century.
Chinese reformers began promoting
modern science and technology as
part of the Self-Strengthening
Movement.
After the Communist victory in 1949
science and technology research was
organized based on the model of the
Soviet Union.

History of Science and
technology of China (2)
In 1976, Science and Technology (S&T)
was established as one of the Four
Modernizations.
In 1995, The State Council of the
People's Republic of China issued the
"Decision on Accelerating S&T
Development".
State institutions joint ventures with
Chinese or foreign venture capital in
order for S&T developments.
The Chinese government has taken
prompt action program as program 863,
973, 985 and 211.
Information and Communication
of Technology in China.
Since the late 1980s, China establishing
market economy, market demands in place of
centralized planning were believed to be the
only driving force of ICT development in the
partys developmental theory. In 1984, the
State Council put forth the Development
Strategy for Our Countrys Electronics and
Information Industry.
In this part, we present four basic issues:
The 863 program
Import and export Hi-Tech
Characteristics of ICT Development
Some companies of China in ICT.

The 863 program (1)
March 1986, the 863 Program was
proposed with state financing of around
11 billion RMB and an output of around
2000 patents (national and international).
Under the plan, about US $200 billion
was to be spent on information and
communication technologies, of which
US $150 billion was earmarked for
telecommunications.
The following are some results of the
development of information and
communication technology through the
863 program:
The 863 program (2)
- The Shuguang and Legend
supercomputers have surpassed a
threshold speed of a trillion times per
second. The Shuguang 4000A
supercomputer, with a speed of 11 trillion
times per second, ranks the top ten
among the worlds top 500
supercomputers.
- The building and development of the
core system software, computer
operating system, database system and
the high speed network system.

The 863 program (3)
- The project computer farming under
the Program won the grand prize at a
world information summit sponsored by
the UN.
- China has also achieved an all-round
breakthrough in superconductor
applications.
- Developed the application of artificial
intelligence and applications in areas
such as, machine translation, speech to
text, information retrieval, Chinese text
recognition and human face detection
and recognition
(1)
The PRCs official statistics on high-tech
trade are divided into nine product
categories
Computers and telecommunications
Life science technologies
Electronics
Computer-integrated manufacturing
Aerospace
optical-electronics
Biotechnology
materials, and others.
The high-tech category is comparable with
the US trade statistics on advanced
technology products.

The PRCs High-Tech Trade by Categories,
2010
Foreign-Invested Firms Contribution to the
PRCs High-Tech Exports (%)
(2)
The large share and the surplus in the
Computers and Telecommunications category
is consistent with the fact that the PRC is
positioned at the final stage of the ICT
production chain-assembly.
In high-tech products, foreign-invested firms
have been playing an even more crucial role,
dominating the PRCs high-tech exports.
In 2002, foreign-invested firms produced 79%
and wholly-foreign-owned firms produced 55%
of high-tech exports.
In 2004, the share of foreign-invested firms
grew to 86%; In 2006 the share of wholly
foreign-owned firms rose to 69%.
Characteristics of ICT
Development
China follows wishes to repeat the
success stories of J apan and the
Four Little Tigers, i.e., Taiwan, Hong
Kong, Singapore and South Korea.
International Business Environment
Open-Door Industrial Policies
FDI Dominance in ICT Production and Exports
Indigenous Catch-up Process Amidst Global
Competition
Selective Import Substituting Measures

International Business Environment
Chinas re-entry into global economy has
taken place in the context of unprecedented
concentration of global business power: trade
liberalization, liberalization of capital flows,
deregulation of national financial systems,
privatization
In 1998, the top 10 companies accounted for
70% of the $334 billion global market in
computers and 86% of the $262 billion global
market in telecommunications.

Open-Door Industrial Policies
In 1986, the Chinese government announced
the Decision of Encouraging Foreign
investments.
In the 1990s, the state cancelled most of its
tariff protections of indigenous ICT
manufacturers from foreign competitors. At the
end of 1991, more than 2,600 foreign-invested
enterprises were established
By 1997, utilized foreign capital made up 40%
of the total industrial investment.
Between 1999 and 2002, the total industrial
investment in the ICT sector by the government
and domestic enterprises was around $180
billion.
(1)
Competitiveness of indigenous firms, Chinas
growing ICT exports have rather enriched and
strengthened foreign-invested firms.
The Chinese state used foreign direct
investment to jump-start the export-led ICT
development. In particular, preferential trade
policies have created an unequal play ground
for foreign and domestic players.
Since 1998, the rate of refunding taxes for
exported commodities has been raised from
6% to 15%, and 10 electronic and information
commodities even enjoyed a 17% tax refund
rate.
(2)
By 2005, a total of 6,480 foreign-invested ICT
enterprises were established, which made up 40.4%
of the total number of all ICT enterprises in China.
Domestic firms confronted these entry barriers, foreign-
invested enterprises would continue to be the major
agent of export-led industrial growth.
Competition (1)
Between 1986 and 1994, the state provided
subsidies for domestic manufacturers in
software, IC, computer..., and exemption of the
valued-added tax, deduction by half of the
income tax, retention of 10% of the sales
income for R&D funds, and exemption of import
tariffs for crucial manufacturing equipments.
In the reform era, China transformed from
planned economy to market-oriented
production, and to foster and strengthen
market-oriented domestic firms. Besides, the
state also expected domestic firms to achieve
economies of scale by being the original
equipment manufacturers for multinationals.
Competition (2)
Chinas fledging domestic firms have been
compelled to enter global market competition,
which shapes the modes of capital
accumulation of indigenous firms. After
accumulating some production and business
capacities, domestic firms use the
competences they have already accumulated in
OEM exports as a springboard to start their
brand names in the domestic market.
Chinas low position of final product assembly
is largely defined by the global chain of
production controlled by multinationals. In the
domestic market, Chinese firms strive to make
breakthroughs in consumer electronics,
including electronic household appliances, PCs
and cell phones.

Competition (3)
From 1990, the state no longer required import
permits and lowered tariffs for computer
products.
In 1996, domestic PC producers initiated four
price wars, which won them a major market
share.
On the demand side, apart from the relatively
small size of affluent urban residents, the
majority of the Chinese population in the
countryside cannot afford ICT products.
On the supply side, the majority of domestic PC
manufacturers are only capable of semi knock-
down (SKD) or complete knock-down (CKD)
operations.
By 1998, the domestic PC market already
contained more than 100 PC manufacturers.
Selective Import Substituting Measures (1)
In the 1990s, the state heavily invested in a
series of Golden projects to expand domestic
markets for computer and telecommunication
technology. These government-initiated projects
forcefully drove infrastructure construction and
technological updates.
In 2002, the state passed the Government
Procurement Law, which decrees that
government procurement should be confined to
indigenous products, services and projects.
In 2006, as high as 50% of the servers
purchased by government and educational
institutions were still foreign brands.

China is also implementing the Go Out
strategy in the Global South and particularly is
aiming to explore markets in Southern Asia,
Eastern Asia, Africa and Latin America.
By 2003, several Chinese enterprises have
established manufacturing facilities, Chinese-
controlled shareholding corporations, trading
firms and R&D centers in developing countries.
Developing and promoting indigenous
corporate power is an integral part of Chinas
globalization scheme.
In contrast to South Korea and Taiwan, China
introduced foreign direct investment to jump
start export-led industrial growth in the early
1990s.
More recent state interventions are meant to
redress the vulnerable position domestic
industries have been placed.
Although China is facing the challenge of
practicing catch-up efforts amidst dominant
transnational market forces, the process of
shaping Chinas ICT development is by no
means complete.
Chinas unified and powerful state power and
its potentially largest domestic market provide
effective leverage to invigorate progressive
industrial policy.
Some companies of China in
ICT
Founded in Beijing in 1984 and
incorporated in Hong Kong in 1988
Tsinghua Holdings Company Limited of
Tsinghua University in Beijing
Headquartered in Beijing, Beyondsoft
possesses nationwide branches and
research centers.
2000, ChinaSoft International Limited is a
listed company in the Hong Kong Stock
Exchange
Neusoft was founded by Northeastern
University in 1988
HiSoft was founded in 1996. In 2002, the
company established a Japan-based
subsidiary.
Main content
BACKGROUND



IN CHINA AND TAIWAN

EDUCATION OF CHINA
COMPARE TO OTHER COUNTRY (1)
Between 1998 and 2007, the volume of
imports from China toward Brazil grew at
an "exorbitant" four digit rate (over
2000%) with an average annual increase
of 46.60%.
China is not the worlds factory as often
stressed, raising all kind of fears about
potential lost of industries, but rather the
worlds assembler.
In January 2011, China Mobile, Japans
NTT Docomo and South Koreas KT
struck an alliance to exploit opportunities
in the mobile market in their home
region.
Indian operator Reliance
Communications is set to secure US$
1.93 billion of funding from the China
Development Bank Corporation (CDBC).
The agreement also includes up to US$
600 million towards the purchase of
equipment from Huawei and ZTE, on top
of an existing US$ 750 million facility for
hardware and services from the Chinese
vendors. This exemplifies the major role
of China.
During the last decade Brazil, India and
China went through major
transformations that yielded impressive
results, especially in the ICT sector.
Emerging economies trade in ICT goods, 1997
(US$ million)
National China Brazil Russia India
South
Africa
ICT Exports
Communication equipment 2685 214 98 63 119
Computer equipment 7513 257 53 249 133
Electronic components 4922 174 153 112 33
Audio & Video equipment 7168 400 267 77 32
Other ICT goods 906 131 346 44 77
Total ICT exports 2453 1176 917 545 394
ICT Imports
Other ICT goods 1618 1217 907 378 433
Total ICT imports 19588 8495 3332 1997 3516
Emerging economies trade in ICT goods, 2007
(US$ million)
National China Brazil Russia India
South
Africa
ICT Exports
Other ICT goods 8608 397 666 344 271
Total ICT exports 355568 3380 1680 1877 1142
ICT Imports
Other ICT goods 11891 2122 2887 1968 972
Total ICT imports 255195 14315 19303 18091 7707
The regional trade seem to be now more tilted
toward Latin America much to the detriment of
the EU and the US.
Notwithstanding Chinas tremendous economic
success, about 208 million Chinese still lived
below the international poverty line of US$1.25
per day of consumption in 2005.
Overcoming the remaining rural poverty
required innovative approaches and continued
strong support.
Rapid industrialization, population growth, and
lax environmental oversight have caused many
environmental issues and large-scale pollution
in China.

Main content
BACKGROUND



IN CHINA AND TAIWAN

EDUCATION OF CHINA
IN CHINA AND TAIWAN (1)
Over the past 20 years, Taiwan has become
the worlds fourth largest ICT hardware
producer with more than 10 particular products.
75% of PCs installed in the world with Windows
OS are produced by Taiwanese IT companies.
Today, the entire production base has mostly
migrated to mainland China due to low cost in
labor and land factors.
The Taiwanese entrepreneurs are dominating
at least 75% of the ICT hardware production
value produced in the PRC. Taiwan is also the
fourth largest semiconductor industry in the
world.
Taipei-approved investments in China nearly
tripled to $5.7 billion in the first half of 2010.
Taiwanese companies employ an estimated
14.4 million workers on the Chinese mainland.
Foxconn employs an estimated 800,000
workers in China compared with just 20,000 in
Taiwan.
Taiwan Semiconductor Manufacturing Co. is
the world's largest contract chipmaker with a
45% share of the market, according to the
Gartner Group.
Some pundits call Taiwan's
semiconductors its "silicon shield"
against an attack from China, arguing
that the United States would move to
prevent any such strike to safeguard
U.S. access to the precious chips.
Taiwanese industry entered China in the
1980s to take advantage of the
inexpensive labor, land and construction
costs there. Investment soared in the
1990s as the demand for IT products
boomed around the world.

Taiwanese companies have been
stronger than their Chinese counterparts
in hardware though less successful in
software. Acer was the world's No. 2 PC
maker in the first half of 2010, while
Lenovo ranked No. 4.
Taiwan dominates the worldwide market
for portable computers through contract
manufacturers whose names are little
known to the general public. However,
China has been winning business
against Taiwan in the field of software
services.
Main content
BACKGROUND



IN CHINA AND TAIWAN

EDUCATION OF CHINA
EDUCATION OF CHINA (1)
Many scholars believe the history of education
in China can be traced back at far as the 16th
century BC. Confucianism probably is the
biggest influence in education of China
throughout the entire Chinese history. In Han
dynasty, a form of public education system
was established.
Changes had been made throughout
thousands years of history, more Western
influence were bought in to the Chinese
education system during the Qing dynasty.
From 1940, Scholars and government officials
suggested a major restructure of education
system, developing new areas such as foreign
language, science and technology.
In 1985, the National Peoples Congress
promulgates the Compulsory Education Law
of the Peoples Republic of China, thus
placing basic education in the country on a
firm legal basis.
Project 211 and Project 985 was born to
promote the education and R&D of China's
science and technology with the intent of
raising the research standards of high-level
universities and cultivating strategies for socio-
economic development. During the first phase
of the project, from 1996 to 2000,
approximately US$2.2 billion was distributed.
211 Project schools take on the responsibility of
training four-fifths of doctoral students, two-
thirds of graduate students, half of students
from abroad and one-third of undergraduates.
They offer 85% of the state's key subjects, hold
96 percent of the state's key laboratories, and
utilize 70% of scientific research funding.
For International Student Assessment, 15-
years-old students from Shanghai ranked first
in all of the three categories: mathematics,
science, and reading in 2009.
International Student Assessment
2009 results for the top 10
nations
Rank Maths Sciences Reading
1. Shanghai, China 600 Shanghai, China 575 Shanghai, China 556
2. Singapore 562 Finland 554 South Korea 539
3. Hong Kong, China 555
Hong
Kong, China
549 Finland 536
4. South Korea 546 Singapore 542
Hong
Kong, China
533
5. Taiwan 543 Japan 539 Singapore 526
6. Finland 541 South Korea 538 Canada 524
7. Liechtenstein 536 New Zealand 532 New Zealand 521
8. Switzerland 534 Canada 529 Japan 520
9. Japan 529 Estonia 528 Australia 515
10. Canada 527 Australia 527 Netherlands 508
List of 9 universities
University Location
Year
Founded
QS Rankings
2012/13
Fudan University Shanghai 1905 90
Harbin Institute of
Technology
Harbin, Heilongjiang 1920 401-450
Nanjing University Nanjing, Jiangsu 1902 168
Peking University Beijing 1898 44
Shanghai Jiao Tong
University
Shanghai 1896 125
Tsinghua University Beijing 1911 48
University of Science and
Technology of China
Hefei, Anhui 1958 186
Xi'an Jiao Tong University Xi'an, Shaanxi 1896 361
Zhejiang University Hangzhou, Zhejiang 1897
170

Project 985 (98/5) is a project first announced
by CPC General secretary and Chinese
President Jiang Zemin at the 100th anniversary
of Peking University on May 4, 1998 to promote
the development and reputation of the Chinese
higher education system.
The project involves both the national and local
governments allocating large amounts of
funding to certain universities in order to build
new research centers, improve facilities, hold
international conferences, attract world-
renowned faculty and visiting scholars, and
help Chinese faculty attend conferences
abroad.

When first announced in 1998, the project
funding was made available to an elite group of
9 universities.
By the end of the first phase of the project, 35
universities were sponsored. In the second
phase of the project, four more universities. It
was announced in 2011 that the project will not
admit other universities (Table 5).
REFERENCES (1)
[1]. Jean Paul Simon, The ICT Landscape in BRICS
Countries: Brazil, India, China, European Union, 2011
[2]. The Ministry of Science and Technology People's
Republic of China, China Science and Technology
newsletter, 2004
[3]. Yang Yao, In Search of a Balance: Technological
Development in China, Beijing University, 2001
[4]. Yixue LI, Introduction of bioinformatics research and
service in China, Xinli Wu, The Potential for Technology
Education in People's Republic of China
[5]. YU HONG, Distinctive Characteristics of Chinas
Path of ICT Development: A Critical Analysis of Chinese
Developmental Strategies in Light of the Eastern Asian
Model, International Journal of Communication 2 (2008),
456-471

REFERENCES (2)
[6]. Yuqing Xing, The Peoples Republic of Chinas High-
Tech Exports: Myth and Reality, Asian Development
Bank Institute, 2012
[7]. http://lazure2.wordpress.com/2010/09/02/be-aware-
of-mainland-china-and-taiwan-stronger-manufacturing-
links-in-ict/
[8]. http://en.wikipedia.org/wiki/China
[9]. http://www.most.gov.cn/eng/index.htm
[10]. http://www.973.gov.cn/English/Index.aspx
[11].http://www.worldbank.org/en/news/2012/09/24/china
-empowering-farmers-through-participatory-approach

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