Chinese Government Supports Initiative For Software Industry

by Paul Denlinger

Posted April 10, 2004

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The Chinese government, as part of its initiative to build up China's domestic software industry, has chosen 47 software companies to support in their efforts to win contracts in the US and Europe. The effort is known as the Offshore Software Engineering Project, and is designed to help local companies win enterprise software projects outside of China.

Traditionally, Chinese companies have been stronger in hardware engineering and manufacture, while Indian companies have been stronger in software engineering and enterprise software projects. While China has large numbers of software engineers, they do not have the experience needed to handle large projects. Since the Chinese government has identified software as a key industry in the country's development, the Offshore Software Engineering Project is designed to bring the more established software companies up to international standards of business and development excellence.

Indian software companies, with their software development experience, have been quick to tap into the Chinese market. On the technology side, the only difference they need to adjust for are localization, and coding for Chinese, a double-byte language. On the business side, early customers have been Chinese state-owned enterprises.

Leading US software companies, including Microsoft and Oracle all have significant development centers in China.

The Chinese government initiative is aimed at getting control of key technology for Chinese companies so that they have full access to all layers of the technology development process. Then, the Chinese government will push the new standards outside of China, first beginning with the countries of Asia, and then out to other, further removed markets.

Many American companies see this as a threat to their technology and intellectual property, and have asked the US government for support. So far, both sides have taken hard positions and refused to budge.

In Asia, the Chinese, South Korean and Japanese governments have partnered to develop a distribution of Linux which supports double byte languages. Under the Linux license, everyone has full access to the source code used to run the operating system.

 

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