IT key to eco­nomic fu­ture: State Coun­cil

China Daily (Hong Kong) - - BUSINESS - By SHEN JINGTING shen­jingt­ing@chi­

More ef­forts are needed to boost do­mes­tic in­for­ma­tion­sec­tor con­sump­tion and make the in­dus­try a new driver of eco­nomic growth, ac­cord­ing to guid­ance from the State Coun­cil is­sued on Wed­nes­day.

Pro­mot­ing the con­sump­tion of in­for­ma­tion — a field that in­volves e-com­merce, the In­ter­net and cloud com­put­ing tech­nol­ogy — can ef­fec­tively drive de­mand, cre­ate new sources of eco­nomic growth and help con­sump­tion up­grad­ing, said the doc­u­ment posted on the cen­tral govern­ment’s web­site.

China aims to boost public­sec­tor and house­hold spend­ing on the IT in­dus­try by more than 20 per­cent an­nu­ally through 2015, the doc­u­ment noted.

By that year, which is the end of the 12th Five-Year Plan, in­for­ma­tion con­sump­tion vol­ume will ex­ceed 3.2 tril­lion yuan ($522 bil­lion) and cre­ate 1.2 tril­lion yuan worth of out­put for re­lated in­dus­tries.

In­for­ma­tion con­sump­tion based on In­ter­net-re­lated prod­ucts and ser­vices is ex­pected to grow faster than the sec­tor as a whole, with an­nual ex­pan­sion of 30 per­cent. The sec­tor will reach a scale of 2.4 tril­lion yuan two years from now.

The e- com­merce mar­ket will main­tain its rapid de­vel­op­ment mo­men­tum. By 2015, e-com­merce trans­ac­tions are fore­cast to to­tal 18 tril­lion yuan, with on­line re­tail trans­ac­tions reach­ing 3 tril­lion yuan.

First- half rev­enue for the e- com­merce sec­tor grew 45.3 per­cent year-on-year to 4.98 tril­lion yuan, the Xin­hua News Agency re­ported on Wed­nes­day. Dur­ing the pe­riod, con­sump­tion of in­for­ma­tion prod­ucts and ser­vices jumped 20.7 per­cent to 2.07 tril­lion yuan.

In­dus­try and In­for­ma­tion Tech­nol­ogy Vice- Min­is­ter Shang Bing said that in­for­ma­tion con­sump­tion is rein­vig­o­rat­ing the econ­omy and boost­ing do­mes­tic de­mand.

How­ever, the coun­try still needs to im­prove its broad­band fa­cil­i­ties and ser­vices and step up In­ter­net in­no­va­tion, Shang said.

The State Coun­cil’s guid­ance calls for a sig­nif­i­cant im­prove­ment in the coun­try’s in­for­ma­tion in­fra­struc­ture from 2013 to 2015. It man­dates the im­ple­men­ta­tion of the “Broad­band China” strat­egy.

Un­der that strat­egy, ur­ban house­hold broad­band speeds should reach 20 Mbps over­all by 2015, with some get­ting faster ser­vice of 100 Mbps and ru­ral house­holds hav­ing a speed of 4 Mbps.

The govern­ment will speed up work to is­sue li­censes for the fourth-gen­er­a­tion mo­bile net­work this year and pro­mote the con­ver­gence of the telecom­mu­ni­ca­tion, In­ter­net and broad­cast­ing net­works into one com­plete sys­tem.

China, which has the largest num­ber of mo­bile phones in the world at 1.2 bil­lion, is al­ready build­ing 4G trial net­works in ma­jor cities.

China Mo­bile Ltd, the coun­try’s largest tele­com car­rier, is pro­mot­ing the do­mes­tic Time- Di­vi­sion Long- Term Evo­lu­tion 4G stan­dard and hopes to start a com­mer­cial roll­out of 4G ser­vice as soon as pos­si­ble.

The guid­ance clearly ex­presses sup­port for the TDLTE stan­dard and aims to push for­ward the de­ploy­ment of TD-LTE net­works.

The govern­ment also hopes to en­hance the sup­ply ca­pa­bil­ity for in­for­ma­tion prod­ucts, in­clud­ing var­i­ous smart de­vices such as phones and TVs.

The coun­try’s first-half out­put of smart­phones surged 120 per­cent to 214 mil­lion units, con­sol­i­dat­ing its po­si­tion as the world’s big­gest smart­phone mar­ket and man­u­fac­tur­ing base.

The doc­u­ment also calls for the com­mer­cial op­er­a­tion of cloud-com­put­ing ser­vices and the in­dus­tri­al­iza­tion of the In­ter­net of things and the Beidou Nav­i­ga­tion Satel­lite sys­tem. Fur­ther, it sug­gests im­prove­ments in the pub­lic ser­vice in­for­ma­tion sys­tem.

As growth in tra­di­tional in­dus­tries slows, the na­tion is seek­ing new growth en­gines in emerg­ing in­dus­trial sec­tors.

Zhu Hon­gren, the Min­istry of In­dus­try and In­for­ma­tion Tech­nol­ogy’s chief en­gi­neer and spokesman, said last month that the min­istry hopes to make the IT sec­tor the na­tion’s third-largest, af­ter real es­tate and ve­hi­cles.

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