CHINA INFORMATION TECHNOLOGY LAW NEWSLETTER
Vol. 2, No. 9 - July 23, 2001
TOPICS THIS ISSUE:
- CHINA SHUTS DOWN 2,000 INTERNET CAFES IN 3 MONTHS
- CINIC REPORTS CHINA'S INTERNET USERS UP 4 MLN TO 26.5 MLN
- CHINA'S INTERNET USER GROWTH SLOWS CONSIDERABLY
- MICROELECTRONICS INDUSTRY GIVEN TOP PRIORITY IN CHINA
- CHINA'S FORBIDDEN CITY DIGITIZED AND ONLINE
- EAST CHINA FARMERS REAP ONLINE BENEFITS
CHINA SHUTS DOWN 2,000 INTERNET CAFES IN 3 MONTHS
Roughly 2,000 Internet cafes in China have been forced to close resulting
from a recent three-month inspection spree by the Ministry of Information
Industry of more than 56,800 Internet cafes and bars. The government news
outlets have noted that 6,000 other Internet cafes have been ordered to suspend
operations and make changes.
The nationwide "clean-up" operation, which started in April, is claimed to
prohibit Internet cafes flooded with pornographic or violent content and
frequented by teenagers.
Latest statistics reveal that by the end of June, the number of Internet
surfers in China had risen 56.8% from a year earlier, reaching 26 million.
The Ministry of Information Industry has also prohibited new Internet cafes
from opening until the national inspections are completed.
(Source: AFX-ASIA)
CINIC REPORTS CHINA'S INTERNET USERS UP 4 MLN TO 26.5 MLN
The number of Internet users in China increased by 4 million in the first
half of the year. A report by the government-funded China Internet Network
Information Center (CINIC), revealed that 26.5 mln people are now using the
Internet in China.
Even though the majority of users are still between the ages of 18 and 30,
the total percentage of this age group fell from 91% to 52.9% at the end of
June. The report said this is due to the tendency of more people aged over 35
logging on to the net.
CINIC reported that 34.4% of those participating in the survey used the
Internet for leisure, up 7% from 1998. However, only 0.3% of respondents said
their main purpose in using the Internet was for shopping and e-business.
(Source: China Daily)
CHINA'S INTERNET USER GROWTH SLOWS CONSIDERABLY
Although the number of Internet users in China had increased to a new high of
26.5 mln in June, the figure also revealed that the swift growth experienced in
the last two years has slowed considerably.
The recently published China Internet Network Information Centre (CNNIC)
report discovered that the number of Internet users in China increased by four
million people in the first half of this year.
The number of people online in China has been increasing at an alarming rate
over the past two years. By the end of last year, the number surged 152% to 22.5
mln people, from just 8.9 mln at the end of the 1999.
However, growth in the first half of this year was considerably smaller than
the increase of 8 million and 5.3 million users in the first and second halves
of last year respectively.
A lack of access to computers, expensive online fees and slow connection
speeds remain a formidable obstacle to many potential users. This has resulted
in the Internet becoming a luxury only for people living in large cities who
earn a high enough salary.
The survey also found that the Internet is now enjoying the use of a broader
segment of society, no longer limited to younger people.
While surfers between the ages of 18 and 30 still make up the majority of all
Internet users, by the end of June their share of the community dropped steeply
from 91% in 1998 to 52.9%.
However, only 0.3% of the respondents' purpose for going online was shopping
and e-business. Growth in online shopping has been nearly flat for the past half
year.
At the end of last year, 31% of users said they had purchased something
online in the past year. The most recent survey found only 31.9% of Internet
users had ever bought anything online.
CNNIC explained that part of the reason why e-commerce is growing slowly is
because the majority of Internet users are under the age of 30 and earn less
than RMB 1,500 (181 dollars) per month. Other reasons, such as inspecting
products before purchasing, a lack of confidence in online transactions, and the
lack of a comprehensive credit system are also attributed to the cause of such a
low growth rate.
(Source: Agence France Presse)

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MICROELECTRONICS INDUSTRY GIVEN TOP PRIORITY IN CHINA
The government of China announced it will give top priority to the
development of the microelectronics industry over the next decade.
Wu Jichuan, the Minister of Information Industry, said that China would
continue to create a sound environment for investment in the field of
microelectronics, open even wider to the outside world in order to speed up
development, and fully utilize domestic and international resources.
At a recent seminar on microelectronics and information technology, the
minister recognized that China is behind developed countries in the
microelectronics industry, and it remains a top priority for China to facilitate
and accelerate industrial development.
Wu said that while preferential policies will be implemented to boost
industrial development, the role of the market will also be given full play in
the coming decade.
These policies include reorganizing the industry, promoting technological
innovation, constructing industrial parks and investing in large
microelectronics projects. These measures will be implemented with the hope that
the industry will develop stronger and independent innovation capability, scale
of economy and occupy a position in the industry of global microelectronics.
Wu advised that areas where industry grows quickly, such as Beijing, Tianjin,
Shanghai, Jiangsu, Zhejiang, Guangdong and Fujian, should improve their
independent innovation capacity, focus on developing new products and expand
capacities for chip processing and circuit encapsulation and testing.
(Source: Asia Pulse)
CHINA'S FORBIDDEN CITY DIGITIZED AND ONLINE
On Monday, China opened a website about the largest museum in China, the
Palace Museum, the famous imperial Forbidden City in Beijing, using modern
digital technologies to preserve the city's ancient art.
The website will provide Internet users with the opportunity to browse the
600 year-old imperial palace and Chinese traditional culture.
The website (www.dpm.org.cn) is one of the first steps to utilize advanced
digital technology to preserve priceless cultural relics, said Tan Bin, vice
director of the Palace Museum.
Further development of the website will concentrate on building a
comprehensive and accurate database for ancient buildings and relics in the
museum, Tan said.
At the same time, it will improve the museum's relic management, protection
work, research programs and international exchanges.
The Forbidden City covers an area of 720,000 square meters and has more than
8,700 rooms built during the Ming and Qing dynasties (1368-1911).
It also has a collection of one million pieces of cultural relics. In recent
years, the museum receives about seven million domestic and overseas tourists
annually.
Because China has a very large population, it would take about 200 years to
show all its people this wonder of Chinese civilization, Tan said.
Besides, Tan said, only about 8,000 relics are on regular display in the
Palace Museum, accounting for less than 1 percent of the total. "This is a
common problem for many museums across the country," he said.
Building a digital information system and reproducing images processed by
such a system are key points in the development of the country's cultural relic
protection and exhibition programs in the next century.
The Palace Museum set up a special data information center in 1998 as an
infrastructure project for the development of electronic information.
At the end of 1999, the museum also constructed a special cable network and
established a database with a collection of over 50,000 photo images of the
ancient relics.
The website took two years to develop using funds of RMB 12 million with
technological support from the Sinosoft Group Corporation working under the
Chinese Academy of Sciences. It will greatly facilitate the preservation and
research of museum arts as well as provide a wide range of cultural information
for tourists who do not have a chance to visit in person.
The website is the most professional and comprehensive of its kind in China,
including a dozen sections on the museum's summary, tour routes, history,
cultural relics, ancient books, unique architecture and academic forums.
Roughly 4,000 high-quality photos are stored on the website and a 360-degree
tri-dimensional showroom will provide vivid images for visitors to access.
The website also hosts two academic magazines published by the museum.
The database for the website is still upgrading and enlarging with more
cultural relics and study results to be supplemented later.
In addition, the website will develop English and Japanese versions, Tan
said.
The Forbidden City was listed as a World Heritage Site in 1987 by the United
Nations Educational, Scientific and Cultural Organization (UNESCO).
(Source: Xinhua News Agency)
EAST CHINA FARMERS REAP ONLINE BENEFITS
Li Wenlong, a farmer from Hongtang Village in east China's Zhejiang Province,
received an e-mail recently from a supermarket in Shanghai ordering 2,000
kilograms of vegetables. Li is only one of 30,000 farmers in Ningbo who are
doing online business transactions.
Hua Oucong, a female farmer in Ningbo, raises peacocks. Last year, her son
helped her post advertisements on the Internet. Orders have been pouring in from
every corner of the country, and over 1,500 peacocks have been sold.
With the help of the Internet, farmers from Ningbo are also selling their
bamboo shoots, plums, peaches and other produce to other provinces and cities.
Some of their produce is even sold abroad.
Sun Denglin is one of the first Internet users among the local farmers. Three
years ago, he reached a million-dollar deal with a European customer via e-mail.
Officials here say the Internet has helped farmers sell their farm produce to
over 20 countries and regions in the world. The farmers themselves say the
information superhighway has built "a bridge that leads to fortune."
(Source: Xinhua News Agency)
Lehman Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents Suite 188,
Beijing International Club 21 Jianguomenwai Dajie, Beijing 100020 China
Tel.: (86)(10) 8532-1919 Fax: (86)(10) 8532-1999 mail@chinalaw.cc http://www.chinalaw.cc/
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