China's e-government software market is expected to become a major
battle ground for domestic manufacturers.
The difference between China and other countries when it comes to
government business, has brought unique advantages to domestic
firms involved in the development of software for use by government
However, only those Chinese software developers who are strong on
the technology and after-sale service are capable of taking on the
job, said a researcher of the State Council's Development and
Those companies which have a proven competitive track record,
coupled with rich experience in software development, are expected
to stay the course and go on to establish firm relations with
According to the State Informatization Leading Group, the State
will gradually increase levels of spending on software over the
next few years.
present, China's spending on software accounts for only about 8
percent of the total of e-government system construction, a much
lower rate than that of most advanced countries.
The construction of an e-government system focusing on software
development is under way across the country, while the demand for
e-government solutions is expected to witness a rapid increase.
The State Council's Development and Research Center predicts that
China's e-government systems market will reach 54.8 billion yuan
(US$6.6 billion) by 2004.
The market for software for government use will increase from 2.5
billion yuan (US$300 million) in 2001, 8 percent of the total
market of e-government systems, to 5.8 billion yuan (S$699 million)
in 2004, 11 percent of the total.
significant number of software suppliers and developers will
benefit from the competition generated by the e-government market,
a researcher with the center said.
is, however, essential that government agencies shift the focus of
their attention from updating their computer systems to improving
e-government software solutions, he said.
group of large and technically advanced Chinese companies have
produced a series of software for taxation information systems and
solutions for financial management and public security, all of
which are of great assistance in meeting the demands of the
official survey shows that government agencies have set up over
3,000 websites. However, many fail to provide detailed and timely
information and lack the capability for exchanging information with
These systems have not been fully utilized so as to improve the
efficiency of government and reform many of its archaic
plan of the State Council's Informatization Office pointed out that
the development of e-government systems will focus on building
databases for the administration of the population, geography and
(China Daily February 11, 2003)