1. Government Role In Development of Software Industry -- A Perspective of Enterprises Prof. Dehua Ju Co-Founder, Vice President of ASTI Vice President of SSIA Advisory Board Member of IEEE Software November 2005

2. ASTI Decisive Role Of Strategic Policy  The Reform & Open Door Policy, proposed by the great leader Xiaoping Deng, had contributed to a dramatic improvement in the performance of the Chinese economy through liberated productive forces  After China joined the WTO in 2001, there would be a dramatic improvement in the performance of China’s trade regime, and in economic performance generally  The great change occurred in the PuDong area of Shanghai is a clear evidence of achievement in implementing such policy

3. ASTI Strategic Focus and Full Support  The software industry has been targeted by Chinese government as a new strategic pillar industry with preferential development  A series of policies for supporting and propping up have been appeared in China: No.18 (2000) and No.47 (2002) Document  A number of software industry bases and parks have been constructed in China as a main measure in developing local software industry  Supported From A Series of National Key Projects  Multiple funding channels have also been created in China

4. ASTI Through Market Driven  The state policy “Industrialization Driven By Informatization” creates a huge inner need and market for IT systems from 20 million Chinese enterprises  Nationwide e-Government Project stimulates a huge new wave in software market  The enactment of China’s new ‘Government Procurement Law’ (GPL) has specifically addressed the procurement of software – the overall efforts of the Chinese government to protect and promote an indigenous software industry

5. ASTI Fundamental Construction -- To Be More Mature  A State Regulation – Qualification For ‘Double Software’: Software Company and Products  Pushed by government ISO9000 and CMM- based SPI became a new hot spot in China  Building Up Public Services & Supporting Environment  HRD – The No.1 Strategic Selection  35 Universities Authorized to Run Pilot Software Institutes  Certificate Programs Introduced

6. ASTI Problems & Roadblocks Key Issues Remain To Be Solved  What is the right model or way to develop China’s software industry ? US model ? Or Ireland/Indian model ? Or Japanese model ? Some experts claim China should adopt a hybrid model. Without a firm strategic decision, we would hesitate about what move to make  Software industry is a labor-intensive one. The government should pay special attention in training of SE talents with high competence – a root for winning future competition. Consciousness towards professionalism is a selection proposed  To effectively identify the common problems and solutions on the way of developing software industry, government needs a think tank. SEC is a considerable selection