Standardization Strategy of China ---- Achievements and Challenges

Wang Ping, Wang Yiyi, John HillChina’s Standards and Innovation Policy Workshop

2009-10-14 ， Beijing

Contents

History and Background1

Standard Project of the MOST2

The Strategy of the government3

Achievements4

Challenges5

Conclusions 6

1. History and Background

1949

1988

1977

1964

2003

planned economy, the influence of the former Soviet Union, centralized standardization system established

Cultural Revolution Reform and Open

Standardization Law issuedFast development

entered into WTOthe project of the MOST

Strategies of the governments

“major technical standards research” program,

2. Standard Project of the MOST

guiding ideology

4 strategic orientations

strategic objectives

5 measures

“Study on the

Strategy of China’s

Technical Standards

Development”

3. The Strategy of the government

A Strategy that National Standardization Supports

National Economic Development the Outline of Eleventh Five-year Plan on the development of

Standardization, 2006, SAC

the National 11th Five-year Scientific and Technical

Development Program, the MOST

the Opinions on Implementing the Plans for Restructuring and

Revitalizing 10 Key Industries and Further Strengthening

Standardization Work (NDRC, MII,SAC)

3. The Strategy of the government (con.)

A Strategy that Sector and local Standardization

Support Independent Industrial Innovation “an independent-innovation-based standardization

strategy should be implemented” ---- by MIIT, the 11th Five-year Plan and Outline of

Medium- and Long-term (2020) Plan of the Information Industry for the Development of Science and Technology,

4. Achievements

The Overall Strength of Chinese National Standards Increased

2006-2008 the central government allocated RMB 300 million for standardization

2008, SAC approved and issued 5946 new standards national standards had totaled 22931, 3111 were

compulsory 39686 sector standards and 14142 local standards had been

registered 444 TCs and 586 SCs.

4. Achievements (con.)

Standards Play an Important Role in Supporting Industrial

Development and Independent Innovation

By the end of 2007, 184 national standards had resulted from

independently-developed technologies.

16 patent-related national standards, in which 5 were AVS

standards, 1 was a digital TV standard, 1 was an EPA system

structure and communication standard used for industrial

measurement and control systems, 3 were agriculture and food

standards, 5 were WAPI standards and 1 was a UOF standard for

Chinese-version office software.

企业的创新应当是站在巨人肩膀上的开放式创新。

Narrow closed

“independent

innovation” means

high cost, may

lead into big risk

4. Achievements (con.)

Huawei should strive for advanced technology, but only half step; 3 steps will be a loser--- Ren Zhengfei, President

1 2 3

Innovation of

enterprise should

stand on the

shoulders of giants,

mainstream its

innovation into

global major

standard system 。

Innovation of

enterprise should

be open and based

on the requirements

of clients, provide

good quality and

service, low price

Huawei’s Innovation Perspective

Huawei’s Standard Perspective

“taking ship of others out to sea”, streaming into global major standard system, strive for initiative in globalization and more opportunities,

The standardization of telecommunication industry is at high level, 90% market share is major standards. You have to mainstream into major standard system for getting more opportunities in global market.

Combine big manufacturers to integrate big standard, coordinate thousands of manufacturers to provide with good quality, low cost services.

Register international patent, protect self intellectual property right, break the barriers in international market

Respect intellectual property right of others, reach Cross License Agreements with IPR owners, e.g. Ericsson, Nokia, Siemens, Qualcomm,

Huawei’s Standard Patent Joint Strategy Persist in investing 10% of selling income into R&D per year, put 10%

of R&D investment into advanced research, standard and patent;

tracing on new technology and new fields, to ensure the required IPR

in the market competition;

Implemented standard and patent strategy, participated international

standardization, promoted independent technology into standard,

accumulated fundamental patent.

Participated in 78 international standard organizations like

ITU 、 3GPP 、 IEEE 、 IETF 、 ETSI 、 OMA, etc.

Took key positions of vice chairman of ITU-T SG11, Chairman of

3GPP SA5, Vice chairman of RAN2/CT1, vice chairman of 3GPP2 TSG-C

WG2/WG3, vice chairman of TSG-A WG2, technical group

chairman of ITU-R WP8F, submitted 2900 proposals or

documents to standard organizations in 2006

Lenovo’s Innovation and standard perspective

The basis of innovation is learning, 90% is of inheritance, own

or others’ experiences, 10% is independently innovation.

---- Yang Yuanqing, Board Chairman

Lenovo participates in domestic and international

standardization positively.

Registers hundreds of patents per year, totally owns more than

2000 patents, the income of patents to 30 to 40 million US

dollars

Lenovo’s Innovation and standard perspective

1988, independently developed computer main board

1991 ， developed first Chinese character chip

1996 ， developed no-jumper main board technology ； 2002 ， developed High performance computer, one

trillion mathematical operations per second

2003 ， to promote IGRS standard as a key pioneer

2005 ， developed first security chip, became one of a 8

core members of TCG

2007, set up joint research center with Microsoft

4. Achievements (con.)

China’s Status in International Standardization Was Greatly

Elevated

In 2008, China became one of six permanent members to the governing

ISO Council

By the end of 2008, 26 ISO secretariats and 5 IEC secretariats where

Chinese experts held the post.

19 TC or SC (vice) chairmen of ISO and 3 TC or SC (vice) chairmen of

IEC were Chinese Experts.

In 2008 ， China submitted 22 standard proposals to ISO and IEC. By

the end of 2008, China had already submitted 164 standard proposals

to ISO and IEC, in which 64 had become international standards.

Prof Song Mingshun got the ISO Award for Higher Education in

Standardization

2009, three Chinese experts won the IEC 1906 Award

5. Challenges

Legal and Regulation System Needs Strengthening The system of standards established under the conditions of

the “planned commodity economy” is no longer able to meet

the requirements of the market economy.

The formulation of national, sector, local standards is presided

over by the government. the government has the right to

preside over the formulation and issuance of the 3 levels of

standards that include all the mandatory and voluntary ones.

The Chinese legal system does not acknowledge the existence

of technical regulations (mandatory standards).

the Standardization Law did not give industrial associations a

legal status to formulate standards.

It is imperative to enact a new standardization law

5. Challenges (con.)

Standardization Pattern Should Be Improved to Meet

the Requirements of Market Economy

Nowadays, some associations, such as CCSA, CEEIA, IRGS

Alliance have become the main force in formulating standards,

but only national or sector standards rather than their own

association standards.

To make standards more relevant to the market, the central

government should also loosen its control over associations in

the aspect of standardization to let the market foster and

develop a system of voluntary standards.

5. Challenges (con.)

MIIT

CCSA

T1: IP & Multimedia Communication

T2: Mobile Internet Application Protocol

T3: Network & Switching

T4: Power Supply & Station Operational Environment

T5: Wireless Communication

T6: Transport & Access network

T7: Network management & Operation Support

T8: Network & Information Security

T9: Electromagnetic Environment & Protection

SACAssociation can develop national, or sector standards rather than their owns

5. Challenges (con.)

IRGS Intelligent Grouping and Resource Sharing 2003 IRGS Working Group established, by MII

IRGS Alliance run from 2005. Lenovo was one bellwether. Now,

14 core members, 134 members

2005.6 IRGS 1.0 became MII sector standard, the first 3C-

compatiable technical standard in China

2006.7 submitted IRGS to ISO/IEC JTC1/SC 25, now FDIS

IGRS standard as a part of Digital Technique Application of

Building and Residence Community National Standard of China

(GB/T 20299)

2006.3, Asia Home Network Council was set up by IRGS

Alliance, ECHONET Consortium of Japan, Home Network Forum

of Korea

6. Conclusions

(1) The Project of the MOST conducted comprehensive

research on standardization history and current status in China,

international standardization organizations and the

developed countries,

the intellectual analysis and contrast;

put forward constructive suggestions for

implementing standardization strategies in China,

and has had great impact on the plans or strategies

released by government at all levels afterward.

6. Conclusions (con.)

(2) The standardization administration in China is a system with

the division of responsibilities of government agencies at all

levels.

The emphases of standardization strategies implemented by

central, sector and local governments are different.

As a consequence, the real standardization strategy is the

comprehensive result of implementing all the standardization

strategies by different government agencies.

6. Conclusions (con.)

(3) The standardization strategy of China can be outlined as: government as the driving force, enterprises as the mainstay,

market as the guidance;

stepwise transition to the voluntary standard system to adapt the

needs of market economy;

to improve market relevant of national standards and sector

standards;

to rationalize the relations between standard and technology

innovation, the protection of intellectual property and upgrade of

industry, to focus on their harmonious development;

to adopt international standard effectively;

to participate international competition on selection and support

submitting proposals from independent innovational technologies.

6. Conclusions (con.)

(4) Standardization in China has developed to a considerable scale and the capacity of participation in international standardization has been gradually improved.

After a quantitative increase of domestic standards, TCs and SCs, technical experts, more attention is currently paid to the quality of development.

The standardization of China has made its due contribution to the development of economy of, gone international and become a very important part of international standardization.

6. Conclusions (con.)

(5) The deep rooted challenge that China standardization

development is facing is the innovation on

standardization administration. Transformed from the planned economy, the standardization

administration system and the four level standards system still

remain the vestiges of China’s planned economy and thus

cannot adapt to the needs of market economy.

Three of the four levels of standards that the Standardization

Law ordains are government standards.

And currently the legal status of association standard in China

is still not recognized.

6. Conclusions (con.)

(6) The revision of the Standardization Law will decide

the direction of the reform of standardization

system. Standardization administration system will

be readjusted gradually with the development of

market economy and the deepening reform of

government.

Wang Ping, China’s Standards and Innovation Policy Workshop

2009-10-14 ， Beijing

wangp@cnis.gov.cn

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