Shanghai.  February 10.  INTERFAX-CHINA -The China OSS (Open Source Software) Promotion Union, an industrial organization under the Ministry of Information Industry (MII), is currently drafting a proposal to seek support from the Chinese government on the development of open source software in China.  The report will be submitted to a very high level within China's bureaucracy. China has a history of encouraging self-developed software to avoid dependence on western technology, but has had mixed results to date.

An official with Co-Create Software, which is a member enterprise of the Union, told Interfax: "the development of open source software in China is still not advanced enough to meet international standards, and the industrial chain for open source software has not been formed yet."

"We will ask the Chinese government to help us, as it has the power to implement macro controls," said Song Kewei, Senior Marketing Manager from Co-Create, who is now working with the OSS Promotion Union

The proposal currently being drafted will be submitted to government departments above ministerial level, including vice premiers, in early March 2006, for examination and approval. It is expected that the government will issue some new rules or guidance on the open source industry after the review.

According to Song, the proposal will firstly provide senior government departments and officials with the current situation of China's open source market, such as its business structure, industrial chain and progress that has been made in recent years. Future development proposals, as well as outlines of the problems met by Chinese open source companies, will be included.

"It will also consist of a detailed plan on the future development of China's open source industry, which was made in accordance with corresponding instructions given in China's eleventh five-year-plan released in 2005," Song said. "The government has already promised to make more investments into open source software during the next five years via different methods such as software procurement."

According to statistics from CCID Consulting, a Chinese IT research subsidiary under the Ministry of Information Industry (MII), China's Linux market, a key part of the open source software market, reported sales revenues of RMB 143 mln (USD 17.88 mln) in 2005 with a year-on-year growth of 48.5%. Sales are expected to record a compound annual growth rate of 43.1% from 2005 to 2009, reaching RMB 578 mln (USD 72.25 mln).

Although China has made significant progress in the development of open source software, there currently exists considerable misunderstanding as to what open source software actually is among Chinese software companies, while the country does not have many patents and intellectual property rights registered relating to open source technologies, which will limit the development of the entire industry in China.

"There are quite a lot of small and medium sized open source software companies in China at present, but most of them can not compete with international companies," Song said. "There even exists fierce competition among Chinese companies in certain sections of the industrial chain." The Union will suggest that the Chinese government looks into these problems. "The government should encourage domestic open source enterprises to stop overheated and meaningless competition, and focus on technical innovation. It will be suggested that we enrich every section to complete the industrial chain," Song said.

Song said that what the open source industry needed most was an environment under which Chinese users would know and use more open source software. "The government should not only provide financial support, preferential tax policies, but also an overall control to arrange, and form a healthy industrial structure, which is suitable for the development of Chinese enterprises."

Meanwhile, the Promotion Union also launched a program recently in January 2006, and plans to invite 30 experts on open source software from around the world, to become senior consultants with China OSS Promotion Union. These experts will give their own suggestions and solutions so as to accelerate the development of the industry.

Chinese open source software companies and developers seldom have communications with the overseas open source community, which means Chinese firms miss a crucial advantage of the open source industry. It is hoped participation of foreign experts will also bring the latest technologies and advanced business models to China.

"The people we invited are all top in their field and have rich practical experience in different sections of the open source software industry, such as technical development, business operation, sales and marketing. Instead of giving speeches, they will come to China to talk face-to-face with our member enterprises," Song said. These experts will also be available for inquires through the Internet. 

Currently 10 of the 30 experts have already confirmed they will take up the invitation - including Jim Zemlin, Executive Director of Free Standards Group, and Zhu Min, President and founder of Webex Software. "Although the support they provide is totally free of charge, the active participation by them also demonstrates their interest and confidence about the open source software sector in China, as well as their recognition of the work and investment that the government has made," Song said.

With direction and support from the Chinese government, China OSS Promotion Union, was founded in July 2004, with the aim to help China form its own development system for the country's software industry.

Ni Guangnan, an academician with the Chinese Academy of Engineering and president of Beijing Software Industry Association, said that open source software was of great importance to China's software industry, as it can break the current Microsoft monopoly in the infrastructure software market in China.

Enterprises and open source software developers have already began to join forces to promote the industry. Besides the China OSS Promotion Union, there also exists the China Linux Industry Association, the Leadership of Open Source University Promotion Alliance, the Zhejiang Linux Industry Committee, the Guangdong Linux Center, and the Shanghai Linux Industry Alliance.