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The Ministry of Science and Technology
People's Republic of China

N0.234 September 10,2000
    * China's University S&T Parks
    * Innovation Projects Harvest
    * China Being the Third Largest Internet Power in the World
    * Major Breakthroughs in China's Applied Software
    * World Advanced E-commerce General Service System
    * Million Hongtu DVDs into US Market

China's University S&T Parks

In the last year the construction of 15 national university based S&T parks approved by the Ministry of Science and Technology and Ministry of Education have enjoyed positive responses of the local government and universities as well as fine development perspectives.

At the experience sharing conference on national university S&T parks opened on August 3, 2000, Xu Guanhua, Vice Minister of Science and Technology and Wei Yu, Vice Minister of Education thought highly of the strategic importance of the construction of university S&T parks in promoting the marriage between science and technology, education and economy so as to spur up the regional economic development. They pointed out that one year of trial efforts have demonstrated that the construction of university technology and expertise based S&T parks is not only an effective channel to promoting the S&T results conversion and high tech industrialization but has also become an important measure to materialize the relevant spirits of the national technical innovation conference and the central authorities.

It is reported that Tsinghua University and Peking University based S&T parks have seen fast development. Up to date, the two parks have a constructed area of 100,000 square meters with more than ten high tech businesses stationed in the parks. Closely collaborating with the local government, Shanghai Jiaotong University has developed a new mode by turning the unwanted spare working sites of nearby enterprises into incubators for high tech businesses. In addition, the Donghu
S&T park of Wuhan University, the Yuelushan S&T park of Hunan University, the S&T parks of Northeast University and Yunnan University have witnessed remarkable achievements under the support of the local government.

It is disclosed at the conference that the 10th Five-Year Plan period is a critical phase for the development of university based S&T parks. Adhering to the principle of “brave for innovation, adapt to local conditions and operate in multiple modes”, China will put a group of university S&T parks under the priority support so as to make them the bases for technical innovation, high tech businesses incubating, innovation expertise training and the demonstration of combined industry, education and research.

Innovation Projects Harvest

It is reported that Chinese Academy of Sciences (CAS) has developed 654 research projects on new disciplines, new areas and cutting edges since the knowledge based innovation experiments were kicked off two years ago. Of these projects, 81 are aiming at developing systematic knowledge and achieving major breakthroughs in line with world S&T development trend and China's future strategic needs and 11 multi-disciplinary efforts to addres major scientific issues such as biochips, mini satellites for storage and relay transmission, nanometer materials, animal cloning techniques and environmental evolutions of China's west section with a CAS ready budget amounting to Rmb 820 million. CAS also kicked off the construction of LAM and OST and upgrading of Beijing Electron-Positron Collider, Lanzhou Heavy Ion Accelerator and Hefei Synchrotron Radiation Source and Controlled Nuclear Fusion Unit with a planned budget totaling Rmb 810 million. The pre-studies of Shanghai synchrotron radiation sources project are also underway.

The trial efforts have remarkably enhanced the competitiveness of CAS' research institutes for landing research contracts. A typical example is that nearly half of the major national basic studies organized by the Ministry of Science and Technology were chaired by CAS' institutes.

Two and odd years have witnessed major S&T results achieved by CAS in its innovation experiments such as the development of Dawning 2000-II super server, rice gene sequencing and its genome improvement, nanometer carbon tubes and new nanometer materials, integrated techniques for sustained high yield and fine quality of Xinjiang cotton. As shown by statistics, in 1999 the S&T achievements registered in CAS were 30% more than the average recorded in the previous three years and so were the annual patent applications with 60% of them for invention patents, a figure much higher than the national average.

China Being the Third Largest
Internet Power in the World

As shown by the latest statistics issued by China Internet Information Center (CNNIC), as of June 30, 2000, China's inland Internet subscribers had reached 16.9million, which made China the third country enjoying the most Internet population following US and Japan. At present, there are 6.5 million inland computers connected to Internet with 16.9 million subscribers, of whom 2.58 million use dedicated lines, 11.76 million use dial-up system and 2.56 million use the both. In addition to computer applications, the subscribers using other means of accessing to Internet such as mobile terminals and electronic information appliances reached 590,000 in number. The websites registered under cn went up to 999,734 and www 27,289. China's total band width for international outlet is 1234M.

Since 1996, the number of China's Internet subscribers has kept on growing at a rate of 200%, twice the world average level. The total number of China's inland Internet subscribers have exceeded that of Germany, Canada and UK and became the third
power in the field after US (80 million) and Japan (20 million). It is predicted that China will move ahead of Japan by the end of this year and will become the largest Internet country in the world ahead of US in the year of about 2005.
The total volume of China's international Internet circuit has reached 1234M, landing a 2.5-time increase than 351M in the last year and 512% more than the same period of last year. Up to date, China has been connected to US, Canada, Australia, UK,
Germany, France, Japan and Korea. As far as band width distribution is concerned, CHINANET took 711M (57.6%), CNCNET 377M, CHINAGBN 69M and UNINET 55M. In addition, China's IP telephone outlet band width has reached 56M.




Stem Cell Grows into Skin

Specialized Committee on Burns, Chinese Association for Combined West and Traditional Medicines announced on August 8, 2000 that skins reproduced by stem cells on the original burn wound created by Prof. Xu Rongxiang, Beijing Guangming Institute of Burn Injury is able to treat large and deep burn wounds. The significance of the result lies in the fact that the treatment does not need skin grafting and will leave no scars. The achievement was rated by US based Science one of ten most important scientific progresses in 1999.

The technique triggers the living cells at the skin wound to grow into stem cells. Being an immature cell, the stem cell is able to grow into different tissues.

Then, doctors have the stem cells controlled so that they could grow into skin tissues, i.e., they directly become skin organs at the burns.

Applied with China's unique drug for wet burn treatment, the study group manipulated the stem cells of reproduction potentials. Scientists have discovered that these stem cells make reproduction and cloning according to certain lines and eventually complete their physiological skin restoration on the original wound.
The Specialized Committee believed that Prof. Xu's stem cell studies have rendered a major breakthrough in cell studies. In the past, scientists would use stem cell to grow tissues or organs away from human body and then transplant themto the burn wound. Now stem cell growing into tissues and organs on the original burns has become possible.

Major Breakthroughs in China's Applied Software

ERP application software, an important component of the CIMS demonstration project of China's applied National 863 Program had passed not long ago the approval check of Jiangsu based Huaneng Huaiyin Power Generation Co. Ltd., which applauds for a
major breakthrough in the application of Chinese made software in the country's industrial information projects.

ERP, short for enterprise resources planning is a large integrated information system exercising a unified management over different sections of an enterprise such as manpower, resources, information , production, supply and marketing, and constitutes an important component of CIMS. In the past, the said applied software had to be imported from abroad. While tailored mainly to foreign management modes, the imported software brought many inconveniences to Chinese enterprises. Thanks to their nearly a decade of efforts, Jiangsu based Jinsiwei Co. has eventually worked out Chinese made ERP software of independent copyright and swept off the obstacles imposed by the sub-system, filled up a domestic blank in the development of visual dynamic restructuring and component technologies supporting industrial models.

World Advanced E-commerce General Service System

Eleven stocks brokerage firms in Beijing have recently dished out their services for mobile phone based short messages for stocks information. This signifies the extensive applications of the integrated e-commerce service system of the world advanced level and Chinese own independent intellectual property rights developed by Shenzhen based Liming Computer Network Co. Ltd.

It is briefed that mobile phone based short messages service for stocks information is only one of the many functions provided by the system named e-commerce post. The core product of the system is information switch which is able to convert the requests and replies from different terminals, telecommunication circuits and protocols into internationally accepted XML formats so as to allow users to have access to the information and services needed through different approaches.

In more detailed explanations, it is said that the system can be reached for services through 12 access modes on seven different types of terminals such as computer, telephone, mobile telephone, laptop computer, television, fax machine and pager. A consumer simply needs register a user's name in the system and open an account for the payment before he or she enjoys all services provided by various service agencies which are connected to the system, As to e-commerce providers such as stock exchanges, stock brokers, banks and information consultation firms, the new system could be a revolutionary touch. Taking stocks brokerage firms as an example, at present all stocks brokerage firms and their subordinated business agencies are providing services such as telephone authorization and on-line trading. These services call for the establishment of independent systems which lead to the high cost of application and maintenance. Now connected with a dedicated digital line, the new system will provide the required services while saving up huge human and material resources.

Up to date from its start in last March, Liming has established its online platforms in Beijing, Shenzhen, Hong Kong, Shanghai, Guangzhou and Xiamen respectively linking to a hundred and more stocks brokerage firms, China Construction Bank, China Agriculture Bank, China Telecommunication Security Confirmation Center and other e-commerce terminals.



First IOI in China

The International Olympiad in Informatics (IOI) will be held in China. This is also the first time the competition has made its way back to Asia since its debut in the region 12 years ago.

Co-sponsored by the Chinese Ministry of Education, Chinese Association on Sciences and Technology, National Natural Sciences Foundation, Beijing Municipal Government and Chinese Association on Computer Sciences, the 12th IOI, also named as IOI2000 will be held from September 23 to 30 in Beijing. It
is reported that representatives from 70 countries and regions will join the competition, making the largest participants crowd in its history.

IOI contests require the contestants solve the given tasks by using computer programming in a given time limit. Being one of the five games of International Olympiads, the IOI contest was launched by UNESCO in 1988, designed for the participation of middle school students under 20 years of age from all over the world and aiming at computer knowledge diffusions among teenagers and creating exchange opportunities for them. The event also helps visitors to learn and understand the cultures of the host country. By running its contests in a different country each year, so far IOI has organized 11 sessions. The participants in the game have been rapidly expanded from 13 countries at the right beginning to 65 in 1999 though the game is of only a short history. China has been taking in part in the game since its debut and come by fine scores. To match with the development of the contest, China has attracted more than thousands of middle school students to join in the studies of information technology through sponsoring National Olympiad in Informatics (NOI). The past contests and the IOI2000 to be held in China are of great importance in promoting the development of China's information sciences and technology and the associated education, improving the quality education in primary and middle schools and expanding international exchanges.

Million Hongtu DVDs into US Market

Granted with a fund support of USD 100 million and more, the DVD export project of Hongtu High Tech Corporation is expected to deliver its million DVD sets into US market before the end of next year.

Recently Jiangsu based Hongtu High Tech Co. Ltd. has signed a multilateral fund raising agreement on supporting the export of Hongtu DVD sets with Shanghai World Trade Co. Ltd. and the Shanghai Branch of China Bank of Industry and Commerce. According to the agreement, the Shanghai Branch of China Bank of Industry and Commerce will provide Shanghai World Trade Co. Ltd. with a loan offer amounting to USD 63.42 million and foreign exchange credit line of up to USD 50 million during the
period of 2000-2001. These funds will be dedicated to the export of Hongtu DVD sets to the US.

A manufacturer of China's first DVD set, Hongtu High Tech has developed an annual manufacturing capacity for 1.5 million DVD sets. It is briefed that while stabilizing its domestic market share, Hongtu will, by taking advantage of its product technology and quality speeds up to expand its shares in the
overseas market. Hongtu's DVD sets have secured 10% share of the US market, flowing into several popular chain stores in the country.

Restore Forested Areas

On August 3, 2000, Hunan Province located in the middle reaches of the Yangtze River kicked off its project for all-round restoration of past wooded land. The expanded afforestation effort covers an area from the upper reaches to the middle ones of the Yangtze River. This shows, experts believe, that the whole basinalong the Yangtze River has been placed under the full fledged restoration operation.

Before this, the Chinese Government officially announced in last March that China's west section will start to restore its past wooded areas mainly in the provinces located over the upper reaches of the river such as Yunnan, Sichuan, Guizhou
and Chongqing.

The Yangtze River basin has for many years suffered from rampant tree felling and excessive farming which has resulted in serious soil erosions desertification. Experts believ that the ecological environment deterioration is a major factor responsible for the rampant floods over the basin in recent years.

To curb up further ecological downturn, China has started from October 1998 natural forests protection projects over the Yangtze River Basin. Opart from restoring the past wooded areas and improving the ecological environment there, China strives to restructure the industries in the upper middle reaches of the Yangtze River so as to eradicate the causes of flood
disasters and increase farmers' revenues and accelerate the process of lifting people out of poverty.

Thanks to the strengthened ecological environment construction and wildlife protection in some areas, the forestry resources over the upper reaches have been recovered and developed with species of wildlife apparently increasing and the area is becoming a paradise for them.

       Comments or inquiries on editorial matters or Newsletter content should be directed to:Mr. Dong Jianlong, Department of International Cooperation, MOST 15B, Fuxing Road Beijing 100862, PR China  Tel: (8610)68512650 Fax: (8610) 68512594, or Mr. Wang Jianping, Editor,NEWSLETTER, 15 Fuxing Road Beijing 100038, PR China, Tel:(8610) 68515544 Ext. 2580