Last June, Chinese government decided to set up 10 bases on the basis of previous software parks in the cities of Chengdu, Beijing, Shanghai, Dalian, Xi'an, Jinan, Hangzhou, Guangzhou, Changsha and Nanjing.

The decision was aimed at providing a better environment for the software industry and boosting its development.

Before that, China has over 40 software development bases, sporadically spread out around the provinces or autonomous regions throughout the country. The dispersed distribution works against the centralization of the software industry.

The bases are expected to develop overseas markets, expand international cooperation in the field and sharpen China's international competitive edge in software industry.

Brief Information of 10 Software Bases:

Beijing

The latest figure shows that only in the city's official software industrial base, the number of software companies has reached more than 1,340, producing 1,178 software products.

Among the software companies in Beijing, Legend, Tsinghua Tongfang and a number of other names have become the nation's most famous brands in recent years. At present, Beijing has more than 60,000 people in the software industry, accounting for 35 percent of the nation's total figure.

Chengdu

Chengdu Software Industrial Base was set up in 1997 and was listed in the "Torch Program"on May 23 in the same year. Basing on Chengdu Top Sci-Tech Company, it covers 1,000 mu (15 mu=1 hectare) in plan and has three relatively independent sections.

Dalian

The Dalian Software Park, established in 1998, is one of the 10 national software bases designated recently as showcases by the State Development Planning Commission and the Ministry of Information Industry, most of which are located in China's coastal regions.

The park has so far attracted over 70 companies, including some renowned software enterprises at home and abroad.

By 2005, the city is expected to realize a total production value of 10 billion yuan (about 1.2 billion U.S. dollars) and an export volume of 500 million U.S. dollars in the software industry alone, said a source from the municipal government.

Xi'an

Xi'an Software Base is composed by hatcher area, demonstrating area and developing area, covering the area of 1,000 mu. It gathered about 90 percent of the software enterprises in Xi'an. It has established 16 million yuan of special fund, 50 million yuan of risk investment fund and 10 million yuan of technical innovation fund.

Guangzhou

Guangzhou Software Industrial Base presently has 629 software enterprises. Gross income in 2000 hit 5.6 billion yuan.

Changsha

Established in 1998, the Changsha Software Industrial Base covers the area of 252 hectare.

It has 102 software enterprises. The gross income of the enterprises in 2000 reached 3.2 billion yuan.

Nanjing

Nanjing Software Industrial Base was set up on December 29, 2000. So far it has had 66 software enterprises involving software production value worth 800 million yuan. It has 2,512 professional technicians.

Shanghai

Shanghai Software Base situates in Shanghai Pudong Zhangjiang Hi-Tech Park, covering the area of 150,000 square meters. Its first phase of project involves the investment of 150 million yuan. Shanghai Software Base aims to create a favorable environment for the development of software industry and attract more enterprises.

Hangzhou

Hangzhou Software Base locates in south bank of Qiantang River. It has about 400 software enterprises. The gross income of the base hit 2.18 billion yuan in 2000 and exports value amounted to US$5.8 million.

Jinan

As one of the important software industrial bases in east China, Jinan Software industrial base has had 51 enterprises with more than 260 products and 3,400 staff.

Its five hard-core enterprises, with 1,300 employees, realized sales income being 920 million yuan in 2000. Four of them have passed ISO9000. Two are under CMM test.

Software Becoming China's Most Rapidly Growing Industry

According to statistics from CCID, the seven listed software companies' average revenues from their main operations amounted to 645 million yuan (US$78 million) in 2000, and their average growth rate was 38.73 percent, significantly higher than the average growth rate of 18.15 per cent of all listed firms on the Shanghai and Shenzhen stock markets.

The average profits of these seven companies reached 73 million yuan (US$9.4 million), rising more than 26 per cent from the previous year. The average growth rate of profits of all listed companies was 5.7 percent.