Computing

Huawei to build US$300 million research centre in Brazil

By: 
Staff Writer
Published: 
April 12, 2011
News Photo
Image: gizchina
BEIJING, China

Huawei, one of China’s leading technology companies, announced yesterday that it will invest US$300 million in the construction of a research centre in Sao Paulo State, Brazil. The company has had a presence in Brazil since 1999, with a focus on telephone network segments - technology used in many branches of telecommunications.

The project was announced by Huawei's chairman, Ren Zhengfei, during a meeting with the Brazilian President Dilma Rouseff. The move comes as part of a wider investment plan in Brazil by the Chinese firm, which has also pledged US$50 million for the purchase of computers for Brazilian universities.

Huawei is the largest networking and telecommunications equipment supplier in China, and second only to Sweedish firm Ericsson worldwide. In 2010, it had global revenues of US$28 billion, and it operates in nearly all of the largest telecom markets around the world. It has persued an extensive investment plan in recent years, opening R&D and training centres extensively thoughout Asia and South America. In addition to the poject in Brazil, it is currently also opening a training centre in Indonesia and an office in Adelaide, Australia.

Software firms to be given new tax breaks in China

By: 
Staff Writer
Published: 
February 11, 2011
News Photo
Image: cnq.ca
BEIJING, China

China's State Council announced in a statement on Wednesday that Chinese software companies will be granted new income tax exemptions, and will also continue to enjoy preferential tax treatment under the government's scheme to promote value-added services. Shares in Chinese software companies rose upon the release of the news, with China National Software & Service Co Ltd posting the largest rise, surging 5.04% in Thursday's trading.

The new stimulus package includes preferential tax policies and support for research and development, and industry analysts have suggested that the corporate tax cut alone will add an extra 5 to 10 percent to Chinese software companies' profits this year. Under the scheme, software companies that have been established for 15 years or more will be exempt from corporate income tax in their first to fifth years after reaching profitability. Between the sixth and 10th years, the companies will then pay 50 percent of the standard taxes due.

Chinese software companies as a whole have grown rapidly in recent years, with an average growth rate of 28% across the industry. Figures from the Chinese Ministry of Industry and Information Technology show that sales in the industry in China reached a total of $203 billion over 2010, a jump of 31 percent from the sector's 2009 figures.

IBM to build Asia's largest cloud storage facility

By: 
Staff Writer
Published: 
February 10, 2011
News Photo
Image: busmanagement.com
BEIJING, China

IBM announced late last month that it will build Asia's largest cloud storage facility in Langfang, Hebei province. IBM will team up with Range Technology Development and the Hebei provincial Bureau of Industry and Information to establish the centre, expected to occupy a total area of 620,000 square metres.

Cloud storage is a type of online storage where data is stored on multiple third-party servers, rather than a designated server. This can be an advantage for many users as they need only pay for the storage spaced used, and do not have to install their own local servers.

The project is expected to be the largest cloud storage base in Asia when it is completed in 2016. IBM has already set up a network of 10 similar centres on six continents, but the Chinese data service market is expected to be a key growth area for the firm, with an growth forecast of $1.9bn over the next five years, a huge increase from the current total market value of $670m.