12.28.11

Cablegate: US Government Talks About Providing Free Software that Helps Chinese Netizens Overcome Filters

Posted in America, Free/Libre Software at 6:58 pm by Dr. Roy Schestowitz

Cablegate

Summary: A look at Free software in China based on cables that Wikileaks released about a year ago to selected journalists

According to the following Cablegate cable, “if the USG [US government] provided free software that helped Chinese netizens overcome filters, this might politicize the issue of Internet freedom and force the PRC government to react.”

It is interesting in the context that, in another Cablegate cable, it says that “China’s 11th Five-Year Plan (2006-2011) calls for the development of embedded software [and] open source software,” so here are the two cables in full:


VZCZCXRO6497
OO RUEHBC RUEHCN RUEHGH RUEHKUK RUEHTRO
DE RUEHBJ #0183/01 0250728
ZNY CCCCC ZZH
O 250728Z JAN 10
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7730
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
RUCNIRA/IRAN COLLECTIVE IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE

C O N F I D E N T I A L SECTION 01 OF 05 BEIJING 000183 
 
SIPDIS 
 
DEPT FOR S, P, D, EAP/CM, EEB, AND H 
NSC FOR BADER, MEDEIROS, AND LOI 
 
E.O. 12958: DECL: 01/23/2030 
TAGS: PREL [External Political Relations], PGOV [Internal Governmental Affairs], ECON [Economic Conditions], PHUM [Human Rights], EINV [Foreign Investments], CH [China (Mainland)] 
SUBJECT: SECRETARY'S INTERNET FREEDOM SPEECH: CHINA REACTION 
 
Classified By: DCM Robert Goldberg fo Reasons: 1.4(B), (D). 
 
Summary 
------- 
¶1. (C) Secretary Clinton's January 21 speech on Internet 
Freedom touched a nerve in China.   Official reaction was 
negative, with harsh criticism coming from the Ministry of 
Foreign Affairs in an official statement and from other parts 
of the Chinese system through critical articles and 
editorials in the official press.  Chinese Internet censors 
were deployed in force to block online commentary and 
coverage of the Secretary's speech, and as of January 24, 
sites in the United States that carried transcripts of the 
speech were inaccessible without VPN or other 
firewall-evading software.  The few Chinese netizens and 
bloggers who did manage to access the speech and then dared 
write about it were generally supportive of the Secretary's 
message.  Other Embassy contacts, including academic 
USA-watchers and journalists, lamented that the Secretary's 
speech would strengthen and embolden those in the Chinese 
system who advocated greater control over the Internet in 
China.  They expressed concern that Internet freedom would be 
made into an "us vs. them" issue rather than a "right vs. 
wrong" issue.  Contacts warned that Chinese officials see 
U.S. efforts to promote Internet freedom as an attack, 
repeatedly invoking the specter of "color revolution."  Some 
contacts in the tech industry praised the speech as being 
"spot on" in its coverage of U.S. firms' difficulty with the 
Chinese business environment.  Contacts outside Beijing were 
cautious with their comments.  Embassy and consulate officers 
will continue to follow the reaction to the Secretary's 
remarks in the weeks ahead to assess their continuing impact 
on government, think tank, media, blogger and business 
actions with regard to the Internet.  End Summary. 
 
Official Reaction Negative 
-------------------------- 
¶2. (C) In a January 22 statement in reaction to the 
Secretary's Internet freedom speech, Chinese Ministry of 
Foreign Affairs spokesperson Ma Zhaoxu, said "we firmly 
oppose such words and deeds, which are against the facts and 
harmful to U.S.-China relations."  Ma's remarks followed a 
January 21 press conference by Vice Foreign Minister He 
Yafei's in which he did not refer to the Secretary's speech, 
but urged the United States to refrain from 
"over-interpreting" the Google case, saying it should not be 
allowed to impact bilateral relations.  Ma's statement was 
much more negative than initial unofficial comment from 
working-level MFA officers the morning of January 22.  Asked 
about the speech, MFA North American and Oceanian Affairs 
Department U.S.A. Division Director An Gang told poloff that 
the MFA noticed that specific Chinese cases or individuals 
were not mentioned in the speech, and that "we are very happy 
about that."  (Comment: the contrast between the "softer" 
comments from the USA desk and the harder language from the 
Spokesman several hours later suggests that the negative 
reaction to the speech originated at higher levels in the 
foreign policy hierarchy.) 
 
Media Reaction Dutifully Echoes MFA Criticism 
--------------------------------------------- 
¶3. (SBU) Chinese media coverage of the Secretary's speech 
widely quoted the MFA statement.  January 22 coverage 
included assertions that the Secretary's call for 
unrestricted access to the Internet could be regarded "as a 
disguised attempt to impose U.S. values in the name of 
democracy."  Articles in the nationalist daily Global Times 
stated that the bulk of Internet comment originated in the 
West, "loaded with aggressive rhetoric against other 
countries," against which other countries cannot hope to 
defend.  Beijing University Professor of Communications Hu 
Yong, quoted in the 21st Century Business Herald, said the 
Secretary's discussion of sharing technology to allow users 
to circumvent Internet censorship meant that the "Google 
incident is only the beginning of a rolling snowball." 
 
¶4.  (SBU) Most regional reporting in China emphasized that 
Internet freedom has now become embedded as a new diplomatic 
tool the U.S. foreign policy.  Shanghai's influential Wenhui 
Daily ran a January 23 commentary calling Secretary Clinton's 
remarks "arrogant, illogical, and full of political shows and 
calculations," accusing her of having a "Cold War mentality." 
Some Chinese outlets rebutted U.S. charges by praising 
Chinese Internet practices.  January 22 televised news 
programming reported on the benefits for Chinese users of 
Chinese governmental supervision of the Internet.  Shanghai 
TV January 22 broadcast programming which painted Chinese 
online police in a positive light. 
 
BEIJING 00000183  002 OF 005 
 
 
 
Blogger Community: Those that Saw it, Liked it 
--------------------------------------------- - 
¶5. (SBU) Chinese netizens accessed the Secretary's speech and 
shared reactions through rough real-time translations on 
Twitter, blogs, and Google.  The range of opinions among the 
self-selecting demographic of Chinese netizens, who had 
circumvented  Chinese government blocks to blog and 
participate in Twitter-based discussions, ranged from 
supportive to skeptical, with the majority expressing 
agreement with the principles outlined in the Secretary's 
speech.  In general, Chinese netizen comments focused on 
speculation about linkages between the Secretary's speech and 
Google's announcement that it was considering withdrawing 
from China. 
 
¶6. (SBU) Many netizen reactions echoed the statements by 
blogger Lian Yue who tweeted that Secretary Clinton's speech 
"clarified the relation between Internet freedom and business 
prosperity, which gave better guidance for American companies 
operating in China."   A Chinese blogger named Zhou Shugang 
wrote that the speech was "certain to have a positive effect 
and was welcomed by Chinese Internet users regarding the 
censorship problem in China."  Others commented that the 
speech was an indication that the United States was leading 
the U.S.-China relationship in the right direction. 
 
¶7. (SBU) Some Chinese bloggers viewed the Secretary's speech 
as "confrontational," but nonetheless inspiring to the 
Chinese people. 
- Chengcheng, a cartoonist-blogger, depicted Secretary 
Clinton as Joan of Arc, with a widely distributed graphic of 
"Hillary leads the people."  Another Chinese Twitter user 
wrote, "What a historic speech( it is the launching of an 
Internet war, the confrontation between democracy and 
authoritarianism becoming public, and the beginning of a new 
Cold War." 
- Wen Yunchao, a blogger based in Guangzhou, similarly 
characterized the speech as "a declaration of war from a free 
nation to an autocracy. It might be as important as 
Churchill's Iron Curtain Speech... I will wait with hope. The 
direct mention of China also calls for a frank and honest 
discussion between Hu Jintao and Wen Jiabao." 
-Gadfly artist and blogger Ai Weiwei, attending a Mission 
sponsored event in Beijing (see para 21), said the 
Secretary's speech "showed the power of the Internet to the 
world" and raised the U.S. Internet strategy to a new level. 
¶8. (SBU) Some bloggers expressed skepticism. 
- Novelist and blogger Yang Hengjun tweeted, "the U.S. 
government has been talking about supporting world-wide 
Internet freedom for ages, but it hasn't done much yet." 
- Rao Jin, the founder of anti-CNN.com, a website critical of 
western media reporting, doubted the sincerity of the United 
States' commitment to the freedoms mentioned in Secretary 
Clinton's speech due to competing commercial and national 
security interests. 
Chinese bloggers, regardless of their outlook, have widely 
reported that Chinese web monitors have been aggressively 
deleting posts and content related to the Secretary's speech. 
 
 
China Watchers: Speech Will Provoke the Authorities 
--------------------------------------------- ------ 
¶9. (C) Other contacts analyzed the Secretary's speech the way 
bloggers did, but were pessimistic about the effect of the 
speech on Chinese authorities.  On January 22 Chen Jieren 
(protect), nephew of Politburo Standing Committee member He 
Guoqiang and editor of a Communist Youth League website, told 
poloff that following the controversy generated by Google's 
announcement, the issue of Internet freedom had been 
discussed several times within the Politburo Standing 
Committee which had agreed that the issue of Internet freedom 
had supplanted traditional human rights issues as a new 
"battleground" between the United States and China.  Although 
he was not aware of any specific Standing Committee 
decisions, Chen said that President Hu Jintao had provided 
general guidance that the issue should not be allowed to 
cause major disruptions to U.S.-China relations. 
¶10. (C) On January 21, speaking before the Secretary's 
speech, Yang Jisheng, Deputy Editor of the reform-oriented 
political digest Yanhuang Qunqiu, told poloff that the 
Communist Party viewed Internet freedom initiatives as a 
direct challenge to its ability to maintain social and 
political stability and, therefore, its legitimacy.  He said 
that, in this context, the Party would resist international 
pressure on the Google issue and would increase restrictions 
on the Internet in the period leading up to the 18th Party 
Congress in 2012.  He predicted that the Secretary's speech 
 
BEIJING 00000183  003 OF 005 
 
 
would be viewed as directed at the Communist Party and would 
therefore generate uncertainty about U.S. intentions towards 
China. 
¶11. (C) On January 23, a prominent Tsinghua University media 
and public opinion researcher pointed out that most Chinese 
media reactions to the Secretary's speech had simply 
republished the MFA statement and were not printing any 
quotations from the speech itself.  Given the political 
sensitivity of the speech and the Google case, this was the 
only safe thing to do, he said.  Any perceived support for 
the Secretary's speech in the press would "cross a red line" 
with censors.  The researcher said the Chinese public had 
mixed feelings about the speech and the Google issue.  While 
many in China were dissatisfied with Internet censorship, 
they also resented public criticism from U.S. officials, he 
said, predicting that the speech would increase nationalist 
sentiment in China.  Another contact, a journalist at a 
Communist Youth League magazine, agreed that while it might 
cause a nationalist response, the Secretary's message "needed 
to be said."  He predicted that the Chinese government would 
attempt to appeal to nationalism to counter the Secretary's 
speech.  However, he noted that most current media commentary 
critical of the speech, and Google, was not being written by 
well known journalists, intellectuals or scholars whose 
silence could be read as a show of support for the speech - 
and for Google. 
¶12. (C) Beijing University School of International Studies 
Assistant Professor Yu Wanli, one of Beijing University's 
better-known U.S.A. experts, told poloff January 23 that he 
had been "disappointed and depressed" when he read the 
Secretary's speech.  "Those who tried to control the Internet 
more in China never had much support before," he said.  "Most 
people believe information should be open, and the Internet 
should be open.  The conservative, security people were the 
minority and many people just laughed at them."  The 
Secretary's speech, however, gave great new energy to the 
"controllers" who could now plausibly argue that the United 
States was explicitly using the Internet as a tool for regime 
change.  "The Internet belongs to every country," he 
complained; "we all can go there, we all can add to it, we 
all can learn from it.  We Chinese were free there.  Now the 
United States has claimed it for itself and so it will become 
an ideological battlefield."  He asserted that, in the past, 
the Chinese authorities had paid relatively little attention 
to controlling the Internet, focusing only on the issues that 
were the most urgent and letting most netizens alone.  "That 
is finished now.  The Secretary's 'information curtain' 
remark will give the authorities what they need to 
'harmonize' the Internet for all Chinese citizens." 
(Comment: 'harmonize' is an acidly sarcastic term in Chinese 
to describe official deletion or blockage of Internet 
content.  Yu is nearly always laid back and even-tempered. 
His commentary on this issue was more emotional and bitter 
than poloff has seen from him in dozens of encounters over 
three years, even on extremely sensitive issues such as the 
Xinjiang riots or the demonstrations abroad against the 
Olympic torch relay in early 2008.) 
 
¶13. (C) Yuan Peng, Director of the Institute of American 
Studies at the Ministry of State Security-affiliated China 
Institutes of Contemporary International Relations (CICIR), 
warned that Google's announcement had become a new irritant 
to the bilateral relationship with the potential to be even 
more dangerous than the Taiwan and Tibet issue.  Yuan said 
that many Chinese citizens believed that Google's decision 
was part of a coordinated public/private effort by the USG to 
impose U.S. values on China, what he referred to as an 
"E-color revolution."  As confirmation of this theory, Yuan 
cited Secretary Clinton's January 7 "21st Century Statecraft" 
dinner with several tech sector CEOs (including Google), 
Google's donations to President Obama's presidential 
campaign, and Secretary Clinton's January 21 speech on 
Internet freedom. 
 
¶14. (C) CICIR researcher Guo Yongjun warned that there were 
people in China and other countries such as Iran who might 
see the "shadow of color revolution" in recent USG policies 
promoting Internet freedom and 21st century e-diplomacy.  For 
example, Iranians might perceive Washington's new initiatives 
on Internet freedom or the advocacy of new technologies such 
as Twitter to be "aggressive" or harboring ulterior motives, 
such as promoting regime change, said Guo.  Informed Chinese 
netizens already know how to circumvent the Great Firewall to 
access Facebook and Twitter, Guo said, including by using 
commercially available software.  He feared, however, that if 
the USG provided free software that helped Chinese netizens 
overcome filters, this might politicize the issue of Internet 
freedom and force the PRC government to react.  One possible 
 
BEIJING 00000183  004 OF 005 
 
 
consequence, warned Guo, was that China might make it illegal 
to download either U.S.-provided or commercially available 
software that helped Internet surfers circumvent the Great 
Firewall. 
 
¶15. (C) Professor Xu Jianguo of Beijing University's National 
School of Development said January 22 that restricting the 
Internet access of Chinese netizens would theoretically 
hamper development of cutting edge industries, but was 
skeptical this had happened in reality.  Professor Wu 
Bingbing, also of Beijing University, said in the same 
meeting that the problem was that China's leaders did not yet 
feel comfortable with these new communications technologies 
and thus preferred to proceed cautiously.  The Google issue 
and Secretary Clinton's speech were likely to prompt them to 
shift from a low-profile to a higher-profile response on 
Internet freedom. 
 
IT Industry: Speech Accurately Portrayed Business Environment 
--------------------------------------------- ---------------- 
 
¶16. (C) The president of a strategic international trade 
consulting business in Beijing and chair of AmCham's working 
group on export controls, called the Secretary's speech "spot 
on, "directly capturing industry concerns about a business 
climate that is getting worse on a "day-to-day basis."  He 
applauded the Secretary's speech as a means of bringing the 
Chinese to the table to address key concerns about the 
business environment and said the decision taken by Google 
was of enormous magnitude, indicating the depth of concern 
over issues it is facing here.  As a result, he believes, the 
Chinese government's failure to respond to its people's 
opposition to censorship would embolden the netizen community 
in its efforts to evade government controls. 
 
¶17. (C) Another high-tech industry consultant expressed 
concern that the Secretary's speech would dampen the 
U.S.-China business climate and drive it "to a new low."  The 
consultant observed that "China has noticed that the NSA and 
the Pentagon have dominated cyberspace policy for over a 
year."  Key officials, academics, and military leaders, 
according to this consultant, hold paranoid fears that the 
U.S. would one day launch a "zero-day" attack on all of 
China's critical infrastructure.  The Secretary's speech and 
Google's recent actions, would amplify this belief. 
 
¶18. (C) Reaction in northern China, where Intel has a 
multi-billion dollar manufacturing factory investment under 
construction, however, has thus far been limited.  Intel's 
Dalian-based General Manager told Congen Shenyang poloff that 
the Secretary's speech had thus far not created a stir. 
Intel's GM had in the past several days met with several 
Dalian Vice Mayors, and reported Google and Internet freedom 
issues had not been raised. 
 
¶19. (C) South China-based Internet portal contacts were 
reluctant to talk with ConGenoffs about ongoing media 
coverage of Google or broader internet freedom issues.  A 
public relations manager from Netease initially refused to 
comment, saying it was not appropriate for her to offer an 
opinion on policy matters, but then guardedly reverted to 
official-sounding comments about why Internet regulation is 
important for the well-being of Chinese users and the 
maintenance of a positive online environment. 
 
¶20. (C) A working-level official from the Guangzhou Municipal 
Informatization (sic) Office went further in sharing 
pro-government comments with ConGenoff, saying that Google is 
a business and should restrict itself to business matters, 
rather than venturing into political territory.  The official 
said 2009 was a very strong year for internet companies in 
China and that internet restrictions had not dampened 
individual user's online experiences or companies' earnings. 
 
Mission Outreach on the Secretary's Speech 
------------------------------------------ 
¶21. (C) January 22, Embassy Beijing and Consulates General 
Shanghai, Guangzhou and Shenyang hosted a simultaneous 
digital video conference viewing of the Secretary's speech 
for dozens of local bloggers, with an additional 300 netizens 
attending via the Internet.  Mission estimates indicate 
Twitter communications and blog entries will reach a combined 
audience of millions of persons.  Following the speech, 
participating bloggers, who were generally supportive of the 
Secretary's message, engaged in a lively discussion focused 
on what specific measures the United States government could 
take to promote Internet freedom in China and whether the 
speech constituted a new direction for U.S. foreign policy on 
 
BEIJING 00000183  005 OF 005 
 
 
China. 
HUNTSMAN


And the second cable:


VZCZCXRO5289
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DE RUEHGZ #0562/01 1350859
ZNR UUUUU ZZH
R 150859Z MAY 07
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 6057
INFO RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHOO/CHINA POSTS COLLECTIVE
RUEHGV/USMISSION GENEVA 0445
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 03 GUANGZHOU 000562 
 
SIPDIS 
 
SIPDIS 
 
USPACOM FOR FPA 
STATE FOR EAP/CM, EA/CIP, AND EB/CBA 
STATE PASS USTR FOR STRATFORD, WINTER 
USDOC FOR 4420/ITA/MAC/MCQUEEN 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], EINT [Economic and Commercial Internet], TSPL [Science and Technology Policy], CH [China (Mainland)] 
SUBJECT:  Guangzhou's Software Industry:  Perspectives from a 
Software Park and a Software College 
 
¶1. (U) Summary:  The development of Guangdong Province's software 
industry has been a key priority in recent years for China's 
Ministries of Commerce, Information Industry, and Education, among 
others.  Guangzhou has emerged as a focal point for the 
establishment of the province's leading software parks and schools 
of software engineering.  Tianhe Software Park, Guangzhou's first 
and largest, boasts 1,203 enterprises and was recently designated by 
the Ministry of Science and Technology as a "Software Industry 
Export and Innovation Base" with a mandate to boost China's 
participation in the international software export and out-sourcing 
markets.  The South China University of Technology School of 
Software Engineering ranks 15th out of China's 36 software schools, 
and is one of only two such schools in Guangdong.  Both the Software 
Park and the SCUT Software School maintain extensive ties to leading 
Chinese companies as well as multinational companies.  End Summary. 
 
 
Overview of the Software Industry in China 
- - - - - - - - - - - - - - - - - - - - - 
 
¶2. (U)  According to Zhan Yanzun, Vice President of the China 
Software Industry Base, Administrative Commission of Guangzhou, 
Tianhe Software Park, the value of the domestic Chinese software 
market is between RMB 100 billion to 150 billion (USD 13 - 19.5 
billion) per year.  Currently, Beijing, Guangdong, and Shanghai are 
the top three locations in the country in terms of the size of the 
software industry.  China's 11th Five-Year Plan (2006-2011) calls 
for the development of embedded software, open source software, and 
middleware which are key focal points for Guangdong.  Zhan also 
noted China's interest in pursuing overseas markets.  The National 
Development and Reform Commission (NDRC) and the Ministry of 
Commerce (MOFCOM) encourage domestic software companies to compete 
in the international marketplace.  The Ministry of Science and 
Technology (MOST) and MOFCOM have both recently sent delegations to 
North America on market exploration trips.  According to Zhan, the 
delegation's biggest target market is North America, followed by 
Europe, and then Southeast Asia.  In the North American market, 
Chinese government officials hope to set up representative offices 
in San Francisco and New Jersey; they will be responsible for 
collecting market information and carrying out marketing functions. 
 
The Making of Guangzhou's Top Software Park 
- - - - - - - - - - - - - - - - - - - - - - 
 
¶3. (U)  Guangzhou Municipality boasts four software parks: the 
Guangzhou Software Park, the Guangzhou Tianhe Software Park, the 
Nansha District Software Park and the Huanghuagang Information Park. 
 The Tianhe Software Park is the largest of the four in terms of 
size (it is the largest among all 11 national-level software parks 
in China, with a planned area of 12.25 square kilometers) and output 
(70 percent of software output in Guangzhou).  Established in 1991, 
it is also the oldest of the four.  In the last 16 years, Tianhe 
Software Park has been named "National Hi-tech Zone" by the National 
Commission of Science and Technology (or MOST), a "Software Industry 
Export and Innovation Base" and "National Industry Base for Online 
Games" by the NDRC and the Ministry of Information Industry (MII). 
The Tianhe Software Park has 19 branch parks. 
 
¶4. (U)  By the end of 2006, according to Qiao Xizhong, Director of 
Service Industries at Tianhe Software Park, there were 1,203 
enterprises (290 were foreign-invested and the rest were domestic, 
largely Guangdong local enterprises) in Tianhe Software Park, 
employing about 50,000 persons, with a total annual output of RMB 
25.3 billion (USD 3.3 billion).  Forty percent of the park's output 
came from the telecom and value-added services, 25 percent from 
financial services and the remainder from office automation (OA) and 
business intelligence (BI). 
-- The top three domestic enterprises in the park are Netease, which 
had revenues of RMB 2.6 billion (USD 338 million) in 2006, 
Digitalchina and Sinobest. 
-- Other key enterprises, which have an annual output above RMB 120 
million (USD 15.6 million), include ChinaWeal, Excellence, Asinfo, 
Chuangxiang, and Keyou. 
-- The top three foreign-invested enterprises are Ericsson from 
Sweden, and two Hong Kong enterprises. 
-- Other key foreign-invested enterprises include Trans Cosmos from 
Japan and the RIB Group from Germany, both of which are engaged in 
software outsourcing. 
 
 
GUANGZHOU 00000562  002 OF 003 
 
 
¶5. (U) Projects currently underway in the Park include: 
-- the Internet Digital Center (IDC), which will house more than 
3,000 servers. 
-- the Southern R&D Center of China Mobile, which will cost RMB 1.7 
billion (USD 221 million) in the first phase with a 490,000 square 
meter work area, 
-- a four-star hotel and apartment buildings for foreign staff, 
namely project managers and technicians from countries such as 
India, the United States, Germany, Japan, and Holland. 
A road is also being built and this will cut travel time to ten 
minutes between the software park and the Eastern Railway Station by 
the end of this year. 
 
Encouraging the Growth of the Software Park and Industry 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶6. (U) Software Park Vice President Zhan noted that MOFCOM granted 
the title "Software Exports and Innovation Base" to Guangzhou, 
Nanjing, Hangzhou, Jinan and Chengdu in December 2006 to boost 
China's participation in the international software market, 
especially in software exports and outsourcing.  Zhan said 35 
enterprises in the park are engaged in software outsourcing, and 
that all are members of the park's Software Outsourcing 
Association. 
 
¶7. (U) The Guangzhou Municipal Government released "No. 44 document" 
in 2006 to attract investors to the software industry.  Incentives 
offered to enterprises to settle in the park include house rental 
subsidies, post-doctoral study subsidies, and income tax 
preferential policies for top management members. 
 
Software Park Officials address IPR issues 
- - - - - - - - - - - - - - - - - - - - - 
 
¶8. (U)  Zhan said that IPR protection has been a focus of both the 
Guangzhou and Tianhe District governments alike.  He also noted that 
the Tianhe Software Park is a member of the Guangzhou IPR Protection 
Team, which is headed by Vice Mayor Wang Xiaoling.  The Software 
Park is involved in drafting and implementing the team's action 
plans on IPR protection. 
 
The Human Resources Component of the Park 
- - - - - - - - - - - - - - - - - - - - - 
 
¶9. (U)  Zhan said Guangzhou's goal is to have 200,000 professionals 
in the software and cartoon/animation industries by 2010.  Zhan 
believed that there is a current shortage of high-end software 
professionals in Guangzhou.  Enterprises in the park recruit both 
new graduates and experienced workers, but company-specific training 
is provided to both before they begin work.  Most enterprises 
conduct training on their own, but Zhan said that enterprises will 
likely utilize on on-site training center after completion. 
Enterprises in the park last year recruited roughly 1,200 college 
gradates from across China, with most coming from Guangdong. 
According to Zhan, Sun Yat-sen University and the South China 
University of Technology (SCUT) have excellent software schools so 
they do not need to look far to recruit qualified graduates. 
 
South China University of Technology 
- - - - - - - - - - - - - - - - - - 
 
¶10. (U) South China University of Technology (SCUT) was established 
in 1952.  In 2003, SCUT ranked the 20th among the 570 universities 
in China.  SCUT has been named a key university of China by the 
Ministry of Education. The university is famous for engineering and 
has 29 schools, 67 undergraduate programs, 177 master programs, and 
75 doctoral programs.  SCUT has a state key laboratory, two national 
engineering research centers, one "National Class A" architecture 
design and research institute, and four key labs certified by the 
Ministry of Education.  In 2005, SCUT professors published 2,326 
papers in academic journals; in 2006, SCUT applied for and received 
207 patents.  In 2006, SCUT won more than USD 43 million in funding 
from the central and provincial governments. 
 
The Software Engineering College at SCUT 
- - - - - - - - - - - - - - - - - - - - 
 
¶11. (U) China currently has 36 software engineering schools.  The 
software school at SCUT was established in 2001 by MOE and the 
 
GUANGZHOU 00000562  003 OF 003 
 
 
Economy Development Planning Committee; it ranks 15th in China.  It 
has been named one of the "National Pilot Schools for Software 
Engineering".  The school includes master's programs for computer 
software, theory, and software engineering, and also has an 
undergraduate program in software engineering.  In 2006, the school 
carried out 44 research projects and received RMB 7.78 million (USD 
1 million) in government funding.  The school was awarded five 
patents and registered 18 types of IPR in software.  According to 
Deng Huifang, dean of the software school, MOE periodically 
evaluates the schools' academic and research achievements and 
decides if they measure up to established criteria.  At present, 
Guangdong Province has only two national pilot schools of software 
engineering, the other one at Sun Yat-Sen University.  With the 
pilot school designation, SCUT can charge high tuition fees, which 
are about 60 percent higher than other schools. 
 
¶12. (U) SCUT's School of Software Engineering currently has 30 
full-time teachers and 46 part-time teachers.  Fifteen of the 
teachers are from foreign countries.  Of the school's 1,475 students 
are 1,132 undergraduate and 343 postgraduates.  Most of the students 
are from Guangdong Province, the ratio of male students to female 
students is 6:1.  Each year, the school graduates 300 with bachelor 
degrees and 200 with a master's degree.  Most of the graduates 
currently work in IT-related fields.  More than 70 per cent of the 
graduates are working in private enterprises, and about two percent 
are self employed.  About 96 percent of SCUT graduates found 
employment rate in 2005 and 2006. 
 
Collaborating with Foreign Companies and Institutions 
- - - - - - - - -   - - - - - - - - - - - - - - - - - 
 
¶13. (U) The School of Software Engineering of SCUT cooperates 
extensively with multinational IT companies such as IBM China Ltd., 
Microsoft Asia Research Center, HP China Ltd., Intel China Ltd., 
Oracle Beijing, BEA, CISCO, and SUN.  The school currently has an 
IBM mainframe education center, a Linux education training center, 
eight labs which work jointly with the companies, three student 
innovation studios and one student industrial practice center. 
Companies like IBM and Microsoft not only provide funding and 
equipment to the research centers, but also work with the centers to 
design courses for the students.  To keep up with the development of 
international software, the school also incorporates courses from 
universities like North West University from U.S., York University 
from U.K., SAP from Germany, and IIT from India. 
 
Guangdong's Software Exports 
- - - - - - - - - - - - - - 
 
¶14. (U)  According to Deng, Guangdong's exports of software products 
amounted to USD 1.9 billion in 2005, or 50 percent of the country's 
total software industry exports, which stood at USD 3.8 billion. 
Shenzhen, Guangzhou and Zhuhai are the top three cities in the 
province in terms of software exports.  The major overseas markets 
for Guangdong are Hong Kong, Japan, Southeast Asia, Taiwan, Europe, 
and the U.S.  Guangdong currently has 1,181 software companies. 
Guangdong has 14 of the top 100 software companies of China; six are 
headquartered in Guangzhou, seven in Shenzhen, and one in Zhuhai. 
These companies include Guangzhou GaoKe Communications Technology 
Co., Ltd., Sinobest, Guangzhou Haige Communications Industry Group 
Co. Ltd., and Guangzhou Ziguang North America Science and Technology 
Ltd. 
 
GOLDBERG

That’s all from China for now.

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