China's information technology（IT） industry has become the third largest  in the world and a major income earner of the economy,  the Ministry of Information Industry（MII ） said  on Wednesday,according to today's China Daily.

    But the related companies must upgrade their technology  level to avoid becoming low-end manufacturers, the  industry regulator urged.

    The IT industry generated revenue of 800 billion  yuan（US$97 billion ） in the first eight months of  this year, up considerably when compared with the  1 trillion yuan （US$121 billion） it earned in the  last full year, said Lou Qinjian, vice-minister of  the MII.

    He said the country's mobile phone and fixed-line  phone customers are growing at a rate of 5 million  and 3 million per month respectively.

    Although China has become a major manufacturer  of electronic appliances, it still lacks core technology,  the official said.

    "China should change its image as a low-end manufacturer  by increasing the technology content and controlling  the patents of high-tech products," Lou said.

    To promote research achievements, the MII will  begin holding an annual election of technological  inventions, he said.

    Six inventions in fields including mobile communication,  optic fibre technology, intelligent handwriting recognition  and geographic remote sensing software, have won the  MII prize this year.