Tuesday, May 24, 2005

In Walling off Software Market, China Forgets Trade Goes Two Ways

From MercuryNews: In walling off software market, China forgets trade goes two ways

"When it comes to information technology, China is a waking giant. With a total information and communications technology marketplace of almost $100 billion, the Chinese appetite for computers, software and networks has more than doubled since 2000. All things being equal, China's high-tech growth is a good thing. With more than 1 billion people and a rapidly growing economy, China should be a tremendously positive trading partner, and the U.S. information technology industry has championed China's accession to the World Trade Organization.

But to be widely embraced, the door to global trade must swing both ways. Not even considering a piracy rate exceeding 90 percent, China is now considering taking the additional step of rolling back the access that foreign software companies currently enjoy in the Chinese government procurement market.

China is in the process of implementing a ``buy Chinese'' software procurement policy for government systems, which, if implemented restrictively, will dramatically inhibit foreign involvement in software sales to the Chinese government."

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