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Software Competition to Get Tough

Chinese software companies have vowed to confront foreign competition with mature technologies as the information security market opens up to overseas firms.

Admitting a technological gap between Chinese and foreign companies, Ni Limin, vice-president from Zhejiang Province's Hangzhou-based Zhongheng Technology said Chinese software manufacturers should develop to meet the demands of the domestic information security market.

"Chinese information security market is opening to foreign software developers,'' Tian Qiyu, vice-minister of public security said Wednesday at the China International Information Security Exhibition 2000, which runs between November 1 and 3.

Foreign information security companies enjoy their position in China. "We see a good future of our products in the Chinese market, because Chinese spend more money on network infrastructures and the requirement for information security becomes stronger,'' Mark Stevens, vice-president of Seattle-based Watch Guard Company said.

According to statistics of the Public Security Ministry, there were 230 information security software developers in China by the end of September this year, and 335 information security products have obtained sale certificates in the country.

Tian said products from the US, UK, France, Germany and Israel had entered China's computer security markets.

Zhao Lin, an official from the ministry's Public Information Network Security Inspection Bureau, said foreign products were equally treated in China's market, but they should have an agent in China, and must have sale certificates issued by the ministry.

However, some core agencies, such as governmental, military, and Party organizations, remain closed to foreign companies.

Li Jun, China marketing manager for US-based Network Associates Incorporation said limitations on foreign products were natural and necessary, but with China's entry to the World Trade Organization (WTO), more fields would open to foreign manufacturers.

"Besides, we will exploit China's market through co-operation with our Chinese counterparts,'' Li said.

Facing foreign competition, Li Muchun, vice-general manager of Beijing-based Tsinghua Dascom Network Security Company was confident.

"In those special fields such as security and the military, which need information security urgently, the success of foreign companies will not be too great because of the restrictions on them, but technological demands of non-governmental sectors are low in China, and we can be competent enough for these sectors,'' Li said.

More than 70 exhibitors from China, the US, Israel, Belgium, South Korea and Singapore participated in the 3-day event, organized by Public Security Ministry and the State Information Center.

(China Daily 11/01/2000)

In This Series

Software: China's Most Rapidly Growing Industry

China to Remain the Most Competitive Investment Market

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