China's software industry will break 1.2 trillion yuan in revenue

Yang Xueshan, deputy director of the Ministry of Industry and Information Technology, said recently that it will work with the relevant ministries and commissions to actively promote the formulation of new policies to further encourage the development of software and integrated circuit industries.

Yang Xueshan disclosed that from January to July of this year, China’s software business revenue totaled 723.1 billion yuan, an increase of 29% year-on-year, and annual software business revenue would exceed 1.2 trillion yuan.

The software industry creates a better environment for development Yang Xueshan made the above statement at the 6th China (Nanjing) International Software Products Expo held recently. He said that the government attaches great importance to the development of the software service industry. Since 2000, a series of policies and measures, including the “Policies Encouraging the Development of Software Industry and Integrated Circuit Industry” (Guofa [2000] No. 18), have been issued and implemented.

These measures include the sale of self-developed and produced software products to VAT general taxpayers. VAT is levied at a statutory rate of 17% before 2010, and the portion exceeding 3% of the actual tax rate is refundable.

After the implementation of the relevant policies, China’s software industry revenue has increased by 20 times, and software exports have increased by 50 times. "The software services industry has entered a decade of rapid development."

Yang Xueshan said that as the industry's competent authority, the Ministry of Industry and Information Technology will work with the relevant ministries and commissions to actively promote the formulation of new policies to further encourage the development of the software and integrated circuit industries, create a more favorable industrial policy environment, and promote the development of China's software service industry to achieve a new leap.

Some of the special projects will receive key support for the new policy mentioned by the Ministry of Industry and Information Technology, which is commonly known in the industry as the “New 18 Document”. People in the industry believe that on the basis of continuation of the original tax incentives, the new No. 18 document will also give special support to certain special projects. Xiangcai Securities researcher believes that related projects should include nuclear high base, Internet of Things applications, software service outsourcing, and information security.

At the meeting on the same day, Yang Xueshan said that new technologies, trends, and new concepts such as cloud computing, the Internet of Things, mobile Internet, and the smart world under the new situation are increasingly drawing attention and attention from countries around the world, especially developed countries. Software service industry as an important part of strategic emerging industries, its important role and status is more prominent, is becoming the commanding heights of global strategic competition and promote new technological innovation, economic adjustment and growth of the new core driving force.

The reporter also learned that the Industrial Structure Adjustment and Guidance Catalog (2010 edition) (Draft for Soliciting Opinions) has been completed and will make important progress in cultivating strategic emerging industries. Under the background of improving product levels and promoting industrial upgrading, all types of basic software, industry informationization, service outsourcing, and the Internet of Things are clearly supported.

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