China will, and should, seek cooperation in key information technology areas, such as the Chinese-led 3G mobile standard TD-SCDMA, an official with the National Development and Reform Commission (NDRC) said.

Other areas where cooperation should be sought include work on the wireless local area network (WLAN) security standard and software capability building.

"We must promote open innovation to help our information industry transform itself from a speed-focused industry to an innovation-based one," said Xing Xiaojiang, division chief of information industry with the NDRC.

The body oversees the planning, and co-ordinates the development of, different industries in China.

Xing said at the 2006 China Electronic and Information Products Market Forum in Beijing that the country should work with other countries and international organizations on the promotion of technologies.

The WLAN security standard, called WAPI, aims to add security to WLAN with its own encryption method and was the focus of a Sino-US dispute in 2004.

This was due to competition between Chinese developers and international giants represented by the world's largest chipmaker, Intel, and the US network equipment provider Broadcom.

In the past two years, the Chinese standard working group has been trying to have WAPI accepted as part of international standards, but its efforts have not been successful.

This year, the government is again putting more emphasis on the standard, whose potential uses include encryption of Intel's famous Centrino notebook chips.

Three ministries said computer equipment using WLAN should use WAPI-based products in government procurements from February. An industrial alliance on that issue is in the pipeline.

Xing also said the home-grown TD-SCDMA third generation mobile phone standard also requires cooperation with other countries.

TD-SCDMA is one of the three standards for 3G mobiles, but only China wants to use it, although many countries have shown an interest.

Xing also said his commission will promotion negotiations with global software giant Microsoft over second-phase cooperation.

The NDRC and Microsoft signed a memorandum of understanding in 2002 in which Microsoft promised to invest US$750 million in three years in China. This includes investment in local production, outsourcing, training and local development.

(China Daily January 20, 2006)