New Policies to Favor Software Industry

The Ministry of Industry and Information Technology (MIIT) has drafted new policies that will help all levels of government advance technology and innovation to promote China's software industry, said MIIT Minister Li Yizhong.

Policies issued in 2000 have favored software enterprises in various aspects including tax incentives, but they are due to expire this year. MIIT is setting down new supportive policies in conjunction with the Ministry of Finance and the National Development and Reform Commission to create a more favorable environment.

Li said the primary goal this year is to propel mergers and acquisitions in the software industry.

It is reported that 58 domestic merger cases involving 1.6 billion U.S. dollars occurred in 2009, representing a 65.7 percent year-on-year growth. Research shows software providers are decreasing in 2010 as a proportion of total mergers and acquisitions.

Li also emphasized that the authorities will further standardize the software service market to improve intellectual property rights protection.

China's software industry has achieved a 36 percent annual average growth in the last 10 years and remains on course to grow 25.6 percent despite the global financial crisis, said Li Yizhong.

Li said China's software industry has achieved a 28.7 percent year-on-year revenue growth in the first four months of this year, including a 22.4 percent growth in exports.