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Merkel to open IT fair with China showcasing tech's shift east

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Merkel to open IT fair with China showcasing tech's shift east

  • FRANK ZELLER, AFP
  • MAR. 15, 2015, 3:22 AM

  • afp-merkel-to-open-it-fair-with-china-showcasing-techs-shift-east.jpg
    © AFP/FileGerman Chancellor Angela Merkel on Sunday opens a major IT business fair where official partner China will showcase its rise as a high-tech power

Hanover (Germany) (AFP) - German Chancellor Angela Merkel on Sunday opens a major IT business fair where official partner China will showcase its rise as a high-tech power.

Merkel -- who has visited China seven times in a decade -- will meet Vice Premier Ma Kai as more than 600 Chinese companies exhibit their tech marvels at the CeBIT fair in the western city of Hanover.

Jack Ma, head of Alibaba -- the online commerce giant that is China's answer to eBay and Amazon -- will give the keynote address, and companies including Huawei, Xiaomi and Lenovo will fill over 3,000 square metres (30,000 square feet) of exhibition space.

China's huge showing "makes it the biggest and strongest partner country presentation we've ever seen at CeBIT," said top exhibition executive Oliver Frese.

Bucking China's wider economic slowdown, information and communication technology are booming in the world's biggest smartphone market with the highest number of Internet users.

"China was known as a supplier of components and later as a supplier of hardware, smartphones, tablets and also PCs," said CeBIT spokesman Hartwig von Sass.

"Now China has numerous companies that have become world leaders ... for example Huawei, ZTE, Neusoft or Alibaba, some of which are far bigger than western IT companies.

"We see this as a shift on the world map: digitisation is going east."

- Industry 4.0 -

The almost three-decade old CeBIT once dazzled consumers with gadgets but has been overshadowed by big tech events in Las Vegas and Barcelona, leading it to focus on business users.

Last year IT professionals made up more than 90 percent of the over 200,000 visitors.

For Germany, the event aims to further cement economic ties with fellow export power China as both seek to adapt to the sweeping digitisation of the world economy.

Germany calls it "Industry 4.0" -- the fourth industrial revolution after steam power, factory mass production and the dawn of electronics and IT.

It refers to connecting automated manufacturing with the online world and the "Internet of Things", where everything from factories, homes and cars to household appliances will be online.

In October China's Premier Li Keqiang praised the "innovation partnership" with Germany and said his country must better harness the creative talents of its 1.3 billion people.

Germany is already by far the biggest European economic player in China, and its exports there have helped it offset the impact of the financial crisis in Europe. Two-way trade last year topped 140 billion euros ($177 billion).

Jost Wuebbeke of the Mercator Institute for China Studies said "the Chinese IT market will grow rapidly in future and have great influence on the global market".

In China-Germany trade, IT still plays a minor role, he said, predicting however that it "could become far more important through German-Chinese cooperation in the field of Industry 4.0".

- 'Firewall of China' -

The choice of the Asian giant as partner country however throws a spotlight on its huge Internet surveillance system dubbed the "Great Firewall of China".

Human rights group Amnesty International plans to protest during CeBIT against China's treatment of critics, including jailed Nobel Prize laureate Liu Xiaobo.

Merkel still speaks out on human rights but has been mindful to avoid major offence since she angered Beijing by receiving Tibetan spiritual leader the Dalai Lama in 2007.

"The German government must ask itself how it will contribute to improving the human rights situation in China," said Amnesty's Verena Harpe.

Berlin and Beijing have been holding joint cabinet meetings every two years -- a format that is unique for China and which Germany has with only a few other countries, among them France, Israel and India.

Some analysts worry that Germany's increasingly close ties with China could become problematic as the Asian giant grows more assertive in its region and on the world stage.

"The relationship between China and Germany has shifted and will continue to shift from a purely economic relationship to security issues," said Hans Kundnani of the European Council on Foreign Relations.

"On the one hand it is an opportunity. Germany certainly has more access in Beijing and more leverage than any other EU member state, but there is also a danger," he told AFP.

"The worry would be that Germany develops a privileged relationship with China on security as well.

"As tensions increase between China and its neighbours ... you could have a situation where Germany undermines a coherent European approach on security issues in Asia."
 
The EU and China both share the same problem. We are powerhouses in technology in the classical sense. Industrial production, engines, turbines, cars and so on. But both lack in software. All internet giants like google, Facebook and so on are located in the USA and this must change.
 
china should develop its own microprocessor and operating system... only then can china claim "tech shifting east"... just my humble opinion. :-)
 
The EU and China both share the same problem. We are powerhouses in technology in the classical sense. Industrial production, engines, turbines, cars and so on. But both lack in software. All internet giants like google, Facebook and so on are located in the USA and this must change.
We can collaborate and develop a world-class software infrastructure together.
 
not a bad suggestion, will benefit both China and Germany (other EU participants are welcome too)
The rate of adoption will be much larger in both China and Europe. That is a combine 2+ billion people. Security concern is minimal as Germany and China will contribute to development of software and both have insight source code.
 
We can collaborate and develop a world-class software infrastructure together.

Thats not the problem buddy. EU and China developed world class software before. But we lavk the marketing and popularity power. Look...EU does so much to push google and facebook back to allow local products to gain upperhand but it fails. China has the same problem.
 
Thats not the problem buddy. EU and China developed world class software before. But we lavk the marketing and popularity power. Look...EU does so much to push google and facebook back to allow local products to gain upperhand but it fails. China has the same problem.
In our case, block them! Then Baidu.com, Wechat and QQ can survive, or we'll all surrender to Uncle Sam. Baidu.com can not defeat google in the English world, but it has dominated simplified Chinese world. So is QQ, Weibo and Wechat, domestic market is big enough for them unless Google/Facebook come here.:p:
 
In our case, block them! Then Baidu.com, Wechat and QQ can survive, or we'll all surrender to Uncle Sam. Baidu.com can not defeat google in the English world, but it has dominated simplified Chinese world. So is QQ, Weibo and Wechat, domestic market is big enough for them unless Google/Facebook come here.

We cant block them on any legal grounds here. We are a democracy. Blocking someone because competition is impossible here.
 
We cant block them on any legal grounds here. We are a democracy. Blocking someone because competition is impossible here.
US is a democracy and still blocks Chinese IT companies, China can do the same in return while EU sucks. :lol:
Anyway if China and EU (Germany) want to create big names internationally they must come with some great ideas first before we can collaborate and compete with US. As for Facebook/Google/Ebay/Amazon/Twitter internet giants China has her own alternatives for 1.3 bln Chinese (not including overseas Chinese) so there's no problem for our companies to survive or gaining popularity. EU countries however have tiny local populations thus they cannot compete with US.
 
Merkel urges China to speed up equal treatment for foreign companies
---------------------------------------------------------------

Hanover (dpa) - German Chancellor Angela Merkel on Sunday urged China to implement reforms to level the playing field for foreign companies and investors and broaden business opportunities.

"There are virtually many opportunities for cooperation," Merkel said at the opening of the world's largest technology trade fair in Hanover, Germany. "Companies and investors naturally need to know in which business environment they are working: predictability, reliability, equal treatment of companies in our countries."

China has been criticized for its unequal treatment of foreign companies. The European Chamber of Commerce in China said last year that the difficult business conditions in the world's second-largest economy were causing European firms to rethink their role.
 
china should develop its own microprocessor and operating system... only then can china claim "tech shifting east"... just my humble opinion. :-)

China intends to invest RMB 20 billion in the chip industry in 2015

OFweek | Posted: 16 Mar 2015, 14:23

The National Integrated Circuit (IC) Fund will invest RMB 20 billion in the semiconductor chip field in 2015, hoping to lay a foundation for the Chinese IC industry chain and industrial ecology construction, said Lu Jun, President of HuaXin Investment Management Co., Ltd.

On March 14, the first Chinese IC Industry Leadership Summit "ICWISE" was held in Shanghai by the semiconductor research institution. As an operating company for the National IC Fund, HuaXin Investment President Lu Jun described the operation strategy of more than RMB 130 billion of national chip fund.

He also revealed that the National IC Fund would invest RMB 20 billion or more in the field of semiconductor chip in 2015.

Lu Jun did not disclose more specific investment objectives, but he said that the National IC Fund would focus on the investment in the IC chip manufacturers, yet those companies engaged in the chip design, packaging and testing, material and application, and others from chip industry chain would also be taken into account.

He also stressed that the National IC Fund would carry out a large investment in the chip industry, and it would be a long-term investor for the industry.

China intends to invest RMB 20 billion in the chip industry in 2015 - OFweek News
 
US Claims Victory in Debate Over Chinese Terror Law
A White House official claims China has tabled a controversial anti-terrorism law.

shannon-tiezzi-36x36.png

By Shannon Tiezzi
March 17, 2015

A senior White House official cited by Reuters said that China has decided to shelve a new anti-terrorism law that would have required technology companies to hand over sensitive information.

As my colleague Ankit reported earlier, China’s draft anti-terrorism law would have required Western firms – most notably technological companies, but also financial institutions and even manufacturers – to give Beijing unprecedented access to sensitive data. For tech firms, that would mean allowing China access to encryption keys and installing “backdoors” that would provide Chinese regulators with access to software.

The Obama administration reacted swiftly to make their displeasure known. President Barack Obama himself spoke with his Chinese counterpart, Xi Jinping, to directly express his concerns. “We have made it very clear to them that this is something they are going to have to change if they are to do business with the United States,” Obama told Reuters. Other administration officials, including Secretary of State John Kerry and U.S. Trade Representative Michael Froman made their concerns clear as well.

Publicly, China has simply dismissed those criticisms. Fu Ying, the spokesperson for the National People’s Congress, said the law had already been tweaked after “hot discussions among legislators.” Fu said the law had been “improved” by the addition of “strict condition and limits” on what data regulators can demand from tech firms and when they can demand it.

Foreign Ministry spokesperson Hua Chunying highlighted these changes in her remarks at a March 5 press conference, saying that the “relevant measures… are in line with the principles of the administrative law and common practices of the world, and will by no means undermine the legitimate interests of Internet operators.” Hua added pointedly that China’s anti-terrorism law is a domestic affair: “We are under no obligation to consult with other countries, and other countries have no right to ask China to do so.”

But Reuters reports that China has decided behind the scenes to table the controversial law, at least for now. “They have decided to suspend the third reading of that particular law, which has sort of put that on hiatus for the moment,” White House Cybersecurity Coordinator Michael Daniel said during a discussion at the Information Technology and Innovation Foundation on March 12.

China downplayed the comments. Foreign Ministry spokesperson Hong Lei told reporters that the third round of discussion on the draft law “is yet to come, after which the draft law will be presented to the Standing Committee of the National People’s Congress for deliberation at a proper time.” That would seem to contradict the statement that the third review session has been “suspended.”

Likewise, industry analysts interviews by Reuters weren’t sure whether to celebrate or not. One source toldReuters that shelving the bill gives tech firms “some breathing room, but not complete relief” as the draft could be reviewed and enacted at any time. The NPC Standing Committee meets bimonthly, providing ample opportunities for the new law to be adopted should the third round of review move forward.

Another source said that China is “not ready to kick out all foreign companies… [so] they backed off.” However, that source fully expects China to continue making life difficult for foreign firms: “You can bet that the next steps will be something that tightens up somewhere but doesn’t cause this level of pain.”

It may be that China has simply decided to table the law temporarily. With Beijing and Washington both trying to make progress on a bilateral investment treaty, especially before Xi’s state visit to Washington this September, China’s leaders may have decided now is not a good time to push forward with the law. Or Beijing may be waiting for an opportune moment – for example, enacting the law as retribution should the U.S. make moves seen as discriminatory against Chinese companies. In any case, the shelving of this law by no means signals a shift from China’s ultimate goal of replacing foreign technology with domestic equivalents by 2020.
 
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