China has granted the "national software export base" status to its five more cities, entitling them to special treatment and financial support from the government, as part of its efforts to compete with India.
The Chinese ministry of commerce has just granted the status of national software export base to Guangzhou in southern China, Nanjing, Hangzhou and Jinan in east China and Chengdu in southwest China.
With the six existing bases - Beijing, Shanghai, Tianjin, Xi'an, Shenzhen and Dalian - China now has 11 national software export bases.
Indian software giants like TCS, Infosys, Satyam, Wipro, NIIT and iflex are already present in Chinese cities like Beijing, Shanghai, Hangzhou, Dalian, Shenzhen and Guangzhou.
Chinese vice-minister of commerce, Yi Xiaozhun said
the ministry will help these bases develop software brands for the international market.
Support for the bases will include interest rebates, R&D funding, personnel training, corporate qualification certification, export credit loans, credit insurance, commercial information and protection of intellectual rights.
Statistics show that the value of China's software exports multiplied 14 times in a six-year period from 1999 to 2005, rising from $250 million to $3.59 billion.
The 11 software export bases contributed 80 per cent of the total volume. Though India, whose software and service exports in March 2005 totalled $17.2 billion, is much ahead of China in the sector, but industry experts say Beijing is trying hard to close the gap and even outshine it.