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No.194

　

CHINA  SCIENCE  AND  TECHNOLOGY
NEWSLETTER
The Ministry of Science and Technology
People's Republic of China
 



 


N0.194 July 30,1999
　
IN THIS ISSUE

  • Innovation Funds for Small and Medium S&T Enterprises
  • CAS New Innovation Bases
  • Shanghai Academy of Life Sciences
  • Achievements for Huashan National Experimental Zone for Sustainable Development
  • Shanghai Academy of Life Sciences
  • China's first Cobalt-6 Container Scanning System
  • Great Wall Super Volume Intelligence Card

    SPECIAL    ISSUES

    　Innovation Funds for Small and
    Medium S&T Enterprises

      Madame Deng Nan, Chinese Vice Minister of Science and Technology, announced at the news briefing sponsored by News Office of State Council on June 25 that the State Council has decided to create an innovation fund for small and medium S&T enterprises so as to support and promote their development. Launched on the day it announced, the said governmental fund is of an initial sum of RMB 1 billion.

      China has seen a great number of small and medium S&T enterprises mushroomed since the opening and reform and they have become the new growth points of national economic development. As shown by preliminary statistics, there were more than 70,000 such enterprises in the country with a total annual revenue of over PMB 600 billion, taxes of RMB 26 billion and hard currency of USD 10 billion. Facts have shown that small and medium S&T enterprises were of the characteristics of smaller investment, shorter construction period, flexible mechanism, lower management costs and better adaptation to market demands that large enterprises cannot match with in terms of innovation mechanism and efficiency. However, small and medium enterprises often encounter many difficulties, fund or loan shortage in particular, which affects their fast development. The new fund dedicated to supporting small and medium S&T enterprises is an important strategic measure to promote sustained economic development of the country, aiming at addressing the problem.

      The interim regulations on the fund management jointly formulated by Ministry of Science and Technology and Ministry of Finance have shown that the fund would support high technology transfer projects in line with national industrial policies, of high innovation capability, strong market competitiveness and fine potential economic and social benefits and also of the perspective to be turned into new industries. The fund will provide support for small and medium enterprises in the forms of reduced loan interest, free financial assistance and capital investment. Generally, the total amount for reduced loan interests and free financial assistance shall not go beyond RMB1 million with the ceiling of RMB 2 million for some exceptional large projects. It is also stipulated that the capital investment shall not exceed 20% of the registered capital of the recipient enterprise.

      To ensure the fairness and efficiency of the allocation, the fund will be managed in the manner that the governmental agency makes the decision, experts panel provides guidance and consultation and management office runs the details in the principle of candid application, fair screening process, scientific management, supporting priorities, open and transparent and dedicated funds for dedicated purposes.

      Madame Deng Nan also stressed that the establishment of the innovation fund was a major embodiment of the orientation in which governmental policies have set and it served for promoting social input in supporting the development of small and medium S&T enterprises. According to her estimation, the initial phase of the innovation fund will be able to support about 1000 small and medium S&T enterprises in three years, which will in turn increase the industrial output by RMB 10 billion, create 100,000 jobs and forge a great number of S&T enterprises competing for the international market.

CAS New Innovation Bases

      It was disclosed by Chinese Academy of Sciences (CAS) recently that tailoring to national strategic needs and major development targets, CAS has preliminarily established 9 innovation bases of basic sciences, high technology and resources and environment sciences.

      In the field of basic sciences, CAS has created Beijing Mathematics Research Base, Beijing Material Science Research Base and Shanghai Life Science Research Base. The core of National Astronomy Research Base has also seen the completion.

      In the field of high technology, through strengthening cooperation among institutes and the collaboration between institutes and enterprises, CAS has formed Shanghai R&D base for high technologies, Northeast R&D base for high performance materials and advanced manufacturing techniques and Beijing research base for information science and technology.

      In the field of resources and environment, taking into account regional characteristics and strength of individual institutes, CAS has preliminarily developed Beijing research base for earth sciences and Northwest research base for resources and environment and sustainable development,. CAS is planning to establish a southwest research base for rational exploration of biological resources and protection of biodiversity by taking advantage of biological resources in the region.
       

    　Achievements for Huashan National Experimental
    Zone for Sustainable Development

      Huashan National Experimental Zone for Sustainable Development passed phased appraisal of experts panel organized by Shanxi Provincial S&T Committee under the authorization of Ministry of Science and Technology on June 25, 1999.

      It is reported that Huashan experimental zone was approved for its establishment by 28 relevant governmental agencies in 1996 as a demonstration base for urban and rural social development. It is also the only national experimental zone in China's northwest region. Guided by the principle of "building the city with tourism, stabilizing the city with agriculture, enriching the city with industry, prospering the city with trade and revitalizing the city with science and education", the experimental zone has taken the policy of "being organized by government, guided by experts, participated by public and run by the society surrounding the core of economic development and in line with national standards and requirements for running the experimental zone of sustainable development”. All these have forcefully promoted the coordinated development of population, economy, society and ecological environment in the zone. Last three years have witnessed the healthy sustained fast national economic growth at 11.69% in the zone. The total financial revenues in 1998 went up 30% more than that in 1996 with greatly improved per capita income for both rural and urban populations. Meantime, more attention has been paid to rational development and exploitation of local resources and construction of biological environment. Along with the improvement of population quality through education and training, the whole society is mobilized to participate in the construction of the experimental zone, which has deeply changed the social and economic development in the zone. Demonstration projects within the experimental zone have been developing smoothly, the investment of national assets of RMB 100 million completed on a cumulative basis and 50 priority projects implemented with desirable results.

    NEWS BRIEFS

      　

    Shanghai Academy of Life Sciences


      On July 3, 1999 ten research institutions in the field of life sciences created by Chinese Academy of Sciences (CAS) in Shanghai were restreamlined into Shanghai Academy of Life Sciences subordinated to CAS.

      As defined by CAS plan on knowledge innovation projects approved by National S&T Steering Group, CAS will establish eight research bases in the country and Shanghai Academy of Life Sciences is one of them. The newly established academy is composed of 8 former Shanghai research institutes in the fields of biochemistry, cytobiology, pharmacy, physiology, brain science, phytophysiology, entomology and bioengineering and Shanghai Life Science Research Center and National Genetics Research Center. The said research bodies have a research population of 1000 in total, of whom 22 are academicians with Chinese Academy of Sciences or Chinese Academy of Engineering.

      The new Academy will aim at the national strategic objectives and international S&T frontiers, focus on major modern hot topics on life sciences and develop biotechnology, innovative drugs and modern agricultural technology. Meanwhile, it will nurture and raise a group of fine academic leaders and the research backbones of high quality and innovation consciousness. The Academy will organize and integrate advantageous strength of different institutes to work on strategic targets such as genome, protein, chromosome complement, large biological molecule structure and functions, phytophysiology, neurobiology, transgenetic technology and innovative drugs.
      　

    China's first Cobalt-6 Container Scanning System


      Thanks to the close cooperation of China Energy Efficiency Investment Co. and Tsinghua University, the first baby of TC-Scan system was born in Zhuzhou Mawei Customs after the successful development of its prototype in 1997, the first of its kind in the world. The new equipment was successfully put into operation on June 30, 1999, which marked a solid step forward in the industrialization of Chinese made container scanning equipment.

      Experts' testing and appraisal results have shown that the performance indicators of TC-Scan are as good as those of similar imported products with the maximum testing dose ten times less than the latter. Experts said the core of low radiation container scanning technique was working out internationally advanced highly sensitive gas-filled ionization chamber sensors and frontier circuit with extremely low noises and advanced signal and image processing techniques. The scanner has been granted with China Golden Prize for Patent and Invention and patent authorization right in US, UK, France and Germany, respectively.

      It is reported that China Energy Efficiency Investment Co. and Tsinghua University have jointly established Beijing Hualixing S&T Co. Ltd. for the follow-up production of TC-Scan. The heads of the company expressed that they will enhance the investment and develop series products dedicated to diversified applications for land, harbor, airports, railway and other sectors so as to play a vital role in the anti-smuggling campaign.

      It is also reported that the debut of TC-Scan has caused a great stir in the international market and so far there have been more than 20 countries and regions showing their great interest in the new machine.
      　

    China's Amorphous Iron Core


      On the basis of successful development of high quality amorphous iron core of computer electric sources, Jiangxi Dayou S&T Co. Ltd., the largest manufacturing base for the said products in China, has expanded its annual production capacity to 10 million with its quality reaching the world advanced level. This has changed China's dependence on the imported products.

      With its own made materials as key components, Dayou has successfully developed amorphous progressive AC welder and high-pressure sodium lamp rectifier. These products have been granted with national patent rights and were rated as national new products and national priority new products respectively. Meanwhile, it has developed iron core in circular, square and c shapes.

      It is briefed that China needs 1000 tons of amorphous magnetic alloy each year with only 300 tons from domestic sources. As far as the iron core used by computer power sources is concerned, Shenzhen and its adjacent region alone will consume 4 to 5 million pieces per month. Before the appearance of Dayou products, they had to rely on importation. Now Dayou has developed a complete set of manufacturing equipment and techniques producing amorphous iron cores. All Dayou's products have been exported to Taiwan and Hong Kong and they still see the shortage of supply.
      　

    Great Wall Super Volume Intelligence Card


      At the first Shanghai International Exhibition on Applied Technology and Equipment held recently, Great Wall Computer Software and System Co. Ltd. has made the debut of its rich new products including the super volume intelligence card and associated reading machine, the Great Wall intelligence ID card and associated identification system, and Great Wall IC management system and associated data storage and transmission system. This attracted great attention of visitors both at home and abroad.

      Being a major member enterprise of the listed Great Wall Shenzhen Group, the company started its intelligence card development as early as 1994. On April 21, 1998, Great Wall sealed on its first Great Wall intelligence card of its own intellectual property right. On December 1998, the Company was granted with the certificate issued by National IC Registration Center for being one of registered IC chip providers in the country.　

      Great Wall intelligence card possesses the largest programmed storage volume in the world with a number of advanced functions such as quick coding, decoding and addition. Great Wall has also developed Great Wall IC operation system so as to ensure security mechanism for the sophisticated storage management.
      　

    Snow Dragon Hailed Its Expedition


      Snow Dragon, a Chinese polar expedition vessel left Shanghai Harbor heading for the Arctic. This hallmarks a new stage for China's scientific expedition in Polar Regions.

      The said expedition in the Arctic organized by the Chinese Government for the first time will travel 5000 miles in 60 days and be expected to return Shanghai in September.

      Planning to travel directly into the Arctic pole, the expedition will investigate the marine, atmospheric, biological, geographic, fishery and ecological environments there. Scientists will also carry out integrated ocean-ice-air-biological studies in the adjacent areas so as to understand the role of the Arctic in the global climate change, the impacts of moisture mass exchanges of the Arctic Ocean and the north Pacific Ocean on north Pacific ocean currents and ecological system, and biological resources of the Arctic Ocean and adjacent marine areas.

      　
      Foreign Funded High Tech Industry in Beijing

    　

      Beijing S&T Development Fund jointly created by Beijing Holding Co. Ltd. and US Zhongjinghe Corporation announced at the end of June that it would invest its initial fund into two Beijing S&T enterprises. This is another important event showing Beijing's positive attitude towards absorbing foreign capital to develop its high tech business.

      As briefed by Bai Jinrong, Vice President of Beijing Holding Co. Ltd., the major investment partner, Beijing S&T Development Fund is the first of its kind in the country supported by the Government to work on overseas venture investment. The fund is totally of USD 50 million with Beijing Holding taking 20% of the equity. The fund is designed to serve for attracting internationally advanced high tech, high tech personnel and venture capital into China, especially in Beijing, an area which gathers most of S&T strength in the country so as to push the high tech industrial development throughout the country forward. The fund will invest in information industries such as the Internet, software, telecommunication and biotechnology and new materials.
      　
      Being the only company sponsored by the Beijing Municipal Government to work on overseas investment, Beijing Holding has raised HKD 5 billion in two years by taking full advantage of its own "window" image. About HKD 5 billion raised from the stock market have been reinvested in the economic development in the city. The company's net assets have increased from RMB 1.6 billion to RMB 6 billion. Hong Kong branch of Beijing Holding will enhance its investment in Beijing's infrastructures and high technology.


           Comments or inquiries on editorial matters or Newsletter content should be directed to:Mr. Dong Jianlong, Department of International Cooperation, MOST 15B, Fuxing Road Beijing 100862, PR China  Tel: (8610)68512650 Fax: (8610) 68512594, or Mr. Wang Jianping, Editor,NEWSLETTER, 15 Fuxing Road Beijing 100038, PR China, Tel:(8610) 68515544 Ext. 2954