China to step up controversial technology plans

Jan 27, 2011 By JOE McDONALD , AP Business Writer

(AP) -- China plans to step up efforts to develop clean energy and other technology industries this year, government officials said Thursday, a strategy that has strained trade ties with Washington and other governments.

Beijing also will create an "enabling environment" for homegrown next-generation and , said Zhu Hongren, a spokesman for the Ministry of Industry and Information .

"China will further develop a series of plans for development of these important sectors," Zhu said at a news conference.

Zhu gave no details of planned support. But efforts to nurture Chinese producers of and other technologies with subsidies and preference in government procurement have triggered complaints Beijing was violating free trade principles. Washington filed a case in December challenging subsidies to Chinese producers of wind and solar equipment.

Communist leaders are promoting work on a range of technologies from semiconductors to genetics in hopes of creating profitable industries and reducing China's reliance on foreign know-how. Clean energy is getting special attention because Beijing wants to curb China's surging appetite for imported oil.

Beijing's high-tech plans are especially sensitive at a time when the United States and other Western governments hope to create new jobs by boosting technology exports.

Zhu said Beijing's new development efforts would be in line with free trade rules.

"I wish to emphasize that China's support for research and development and technology is in accordance with the WTO and we have treated foreign businesses in , such as those from the United States, equally," he said. "Chinese high-tech development will provide opportunities for foreign as well as Chinese businesses."

In mobile phones, researchers expect to finish development next year of equipment for China's homegrown fourth-generation, or 4G, standard, said Zhang Feng, director of the industry ministry's telecoms development department.

"The conditions are basically there for large-scale testing of TD-LTE," Zhang said, referring to China's version of Long Term Evolution, the dominant 4G standard.

Zhu said technology plans this year also call for development of more energy-efficient, low-carbon industry. The government announced this month it met a five-year target to reduce China's "energy intensity," or energy consumption per unit of economic output, by 20 percent from 2005 levels by the end of 2010.

Explore further: Bose sues Beats over headphone patents

More information: Chinese Ministry of Industry and Information Technology (in Chinese):
http://www.miit.gov.cn

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User comments : 5

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danlgarmstrong
5 / 5 (2) Jan 27, 2011
What is good for China is good for the world. We all need access to clean energy. Asia especially is expanding, and if they can do it without relying on petroleum the world will be a safer and cleaner place. My only regret is it won't be the U.S. selling clean energy plants to the world. We all will be buying Chinese high tech goods.
dirk_bruere
5 / 5 (2) Jan 27, 2011
The Chinese govt is run by scientists and engineers.
Ours are run by lawyers and accountants.
GaryB
5 / 5 (1) Jan 30, 2011
The Chinese govt is run by scientists and engineers.
Ours are run by lawyers and accountants.


You really think Palin and her tea pals could get through a CPA or a real law school? Naif.

Our government policy is beholden to hick theologians of the God and/or the "Market" type. They don't believe that gov. policy can work even in principle ... even as they organize over the gov. policy internet running on gov. policy microchips helping us navigate by gov. policy GPS.
ryggesogn2
1 / 5 (2) Jan 30, 2011
The Chinese govt is run by scientists and engineers.
Ours are run by lawyers and accountants.

That explains why there are so many socialists on this web site?
They don't believe that gov. policy can work even in principle

It may be useful if you could produce successful govt policies. Successful in the sense that caused expansion individual liberty and prosperity.
The policies that have accomplished such feats are those that limited the power of the govt.
ryggesogn2
1 / 5 (2) Jan 30, 2011
"Communist leaders are promoting work on a range of technologies from semiconductors to genetics in hopes of creating profitable industries and reducing China's reliance on foreign know-how. Clean energy is getting special attention because Beijing wants to curb China's surging appetite for imported oil."
When has any govt picked the technology winner?

"This is typical of government intensive economies, as politics picks winners and losers rather than competitive behavior and natural market forces. A $500,000 company simply cannot compete with a $500 billion company that receives government subsidies and political favoritism. Corporate welfare and sleazy government relationships create unnatural monopolies, developed through a command economy market structure. The economy becomes not a free market, but a "corruption" market."
http:/www.realclearmarkets.com/articles/2011/01/29/the_corporatist_culture_of_corruption_98844.html