1.1 Characteristics and Replacing Rule of Pillar Industry
The pillar industry refers to those industrial sectors, which arise at different development period along the progress of national economic development, as well as affect the overall situation and occupy the dominant position in national economy. As the main components in industrial structure, the pillar industry represents the upgrading orientation of industry. Whether the selection of pillar industry is reasonable or not, it not only affects the pillar industry itself, but also exerts important influence and promoting function on the upgrading and optimizing of industrial structure as well as on the improving of national economic quality and strength.
1.1.1 Characteristics of pillar industry
Generall speaking, the pillar industry has the following characteristics
Growth: the emerging industry reflects the present advanced technical level, with high economic efficiency, large production capacity and higher economic growth rate;
Interrelation: the industry is with high interrelationship, having great forward and backward linkage effects, which can produce grand chain effects and bring along the development of other industrial sectors;
Demand: this industrial sector normally is the production sector of social final products, with high elasticity of demand. Within a longer period, there is an increasingly growing demand both in domestic and international markets, which is difficult to fully satisfy.
Internationalization: it has a certain capability of exportation for getting foreign exchange. Its products make up a certain or larger proportion of export volume.
1.1.2 Replacing rule of pillar industry
Historically, the pillar industrial sector has the characteristics of replacing continuously along with the important changes of the factors such as technology, market and resource. This eplacement means the change of industrial structure. In modern economic history, cotton spinning industry was ever the pillar industry of the United Kingdom in the 18~19 th century. The development of this sector expanded the demand for spinning and weaving machine and steam engine, which resulted in the promotion of early machine manufacturing industry development, as well as the development of trade and transportation industries for importing cotton from abroad and exporting large quantity of products to abroad. Furthermore, the development of machine manufacturing industry also expanded the demand for iron, so as to promote the development of mining and smelting industries. Another example is the three historical replacements of pillar industry occurred in Japan after the war. The first group of pillar industries was electric power industry, the development of which created conditions for the raw material industries with large power consumption such as petrochemical industry, aluminum industry and steel industry. The second group of pillar industries was heavy chemical industries such as petroleum, chemical, steel and shipbuilding industries, which created conditions for the development of processing and assembling industries. The third group of pillar industries was the mechanical industries with high-income elasticity, especially car industry and household electric appliance industry. The alternative precedence of these three groups of industries sustained the progress of emphasizing on heavy and deep-processing industries in their structure.
The developing and replacing rule of pillar industry must be grasped from the relation between the evolution of pillar industry sector and technical revolution. Concerning the world technical revolutions and the replacing history of pillar industries, it can be indicated in the following figure.

Later stage of industrialization Car, durable consumer goods industry, electronic industry information infrastructure industry Auto industry, durable consumer goods, industry, computer manufacturing industry, micro-electronic industry, aerospace industry, atomic energy industry, synthetic material industry, as well as various industries belonging to pillar industry group in mid stage of industrialization Industrial structure developed towards technique intensification. The emerging industries developed rapidly.
Informatization stage Information industry, bio industry, new energy industry, new material industry, aerospace industry Photoelectron industry, information services industry, information equipment manufacturing industry, aerospace industry, biologic engineering, new energy source and new material industry, as well as various industries belonging to pillar industry groups in the stage of industrialization Information and other high-tech industries became the pillar industries of national economy

Through the study on the replacing history of pillar industries, we can sum up some rules:
First, there is a lagging period from the occurrence of technical revolution to the formation of new pillar industry. Since the industrialization of new technology mostly needs a period, the replacement of pillar industry sector also has a cycle. However, in modern society, this cycle is tending to shorten increasingly.
Second, in each period, the constitution of pillar industry sector is developed from several industries in the early period to industry groups. In the early period, the relations between pillar industry and technical revolution was close and in single direction; while in modern society, the status of multidimensional, parallel and alternative development has occurred. Due to many significant inventions and breakthroughs in modern technical revolution, the new technique group in different sectors has come into being, which results in that the pillar industry sector has the characteristics of multi-dimension.
Third, the replacement of pillar industry sector presents the essential structural feature of development from labor-intensive (e.g. agriculture, textile industry) ”ścapital-intensive (heavy chemical industry) ”ścapital and skill-intensive (car, aerospace, household electric appliance, etc) ”ś knowledge and skill-intensive (electronic information industry, new material, etc.)
Fourth, the replacement of pillar industry sector has the output feature of development from low added value”ś high added value”ś higher added value, which indicates the progressing of technology and the advancing of industrial structure.
Since reform and opening, China has established machine, metallurgy, petrochemical, electric power, building, car and information industries successively as the pillar industry of national economy. The general guidelines for the development of these pillar industries are: further face with the market, initiate competition vitality, and collocate resources by relying on market, so as to accelerate the development of industry and bring along the healthy and rapid development of national economy.

1.2 The Reasons and Significance for Information Industry Becoming the First Pillar Industry
Based on the updated statistical information of State Statistical Bureau, currently Chinese information industry ranks the first among all national industries in output, gross sales scale, as well the contribution to national economic growth. Information industry has become the first pillar industry of Chinese national economy, and is an important force for the growth of national economy.
1.2.1 The reasons for information industry becoming Chinese first pillar industry
1. The growth rate of value-added of information industry was the highest among all pillar industries
In 1999, when based on the absolute value of value-added, the added value of building industry was the highest among all pillar industries and reached to RMB 544.3 billion. The added value of information industry was RMB 272.9 billion, higher than RMB 121.7 billion of chemical industry, RMB 74.4 billion of machine industry, and RMB 59 billion of petroleum industry. However, when comparing based on the growth rate of value-added, the growth rate of value-added of information industry was the highest among all pillar industries and reached to 31.8%. The growth rate of value-added of petroleum industry was the second, being 11.5%; that of chemical industry was 10.3%; that of machine industry was 6.7%; and that of building industry was the lowest, only 4%.
2. The profit situation of information industry was the best among all industries
In 2000, information industry realized the total profits of RMB 110.88 billion, much higher than that of other pillar industries in the same period, and becoming the number one profits earning industry of national economy. Among pillar industries, in 2000, electronic and communication equipment manufacturing industry realized the total profits of RMB 38 billion, became the number one profit earning industry of the industrial sector, and exceeded the profit value of electric power industry for the first time.
3. Electronic information industry becomes the No.1 Export Industry in China
Multi-increase effect and driving role played by electronic information products export in foreign trade export and economic growth and the guiding role played by it in improving national competitiveness have become more and more distinct. Gross amount of electronic information product export keeps growing. In 2000, the total amount of electronic information products export reached US$ 55.1 billion, accounting for 22.15 of the total national export amount. During 1991-1999, the electronic information products export had an average increase rate of 31.63%, with the fastest growth among various national economic sectors and with a great potential in growth.
While expanding the export, the electronic information products also got obvious achievements in import substitutes. Several years, ago, products such as program controlled exchangers and computers, etc., in China were totally foreign products, but since last year, Chinese-made program controlled exchangers has occupied more than 98% of domestic market, the sales volume reaching 38,910,000 lines in 1999; sales volume of domestic-made computers reached 3.89 million pieces, accounting for more than 70% of domestic market share; production volume of domestic color TV sets were 34.97 million pieces, hitting around 90% of domestic market share; mobile communications basically realized matching-up, and the development of mobile phone set also got massive breakthrough.

4. The biggest contribution rate of information industry to national economic growth
The added value of information industry of year 2000 in China was RMB272.9 billion, accounting for 3.84% of GDP. In 1999, the contribution rate of Chinese information industry to the growth GDP was 11.83%, far surpassing the contribution of other industries to the economic growth.
1.2.2 Driving role of information industry to the upgrading of Chinese economic structure
Information industry is a kind of industry having high degree of industrial association, inductivity and driving characteristics; thus, it has become the driving industry of the Chinese economic structure adjustment.
(1) Information industry if the growth source of modern economy
Information industry is the fastest developed leading technology in the high-tech fields in present era. The continuous bread through of information technology empowers productivity of information industry raise almost 100 times in recent 20 years. Information industry not only enjoys fast development itself, but also possesses high penetration, high multiple-increase and high driving, therefore, it brings emergence and development of a series of relevant industries, and provides advanced facilities for traditional industry, furthermore, it expedites some new "marginal industries", and creates enormous driving action to the Chinese economy development, and is the growth source of modern economy.
(2) Information industry is the important impetus of industries upgrading
Within recent years, advancement of industries structure upgrading in the development countries has been realized through the industrialization of information technology to great extent. In China, the extensive application of information technology strives the revamping of traditional industries, improves labor productivity, accelerates products upgrading, strengthens the enterprises' competitiveness and accelerates the transformation of industrial structural towards knowledge-intensive and high quality services trade. The input output ratio of information technology in revamping the Chinese traditional industries aspect reaches more than 1:4, even surpass 1:20 in some fields. Therefore, while information industry accelerates optimization of Chinese industrial structure and transformation of economic growth method, it also brings enormous economic benefit for national economy.
(3) Information industry provides market demand for the adjustment of economic structure
Economic structure adjustment requires adequate market demand as a guarantee. Take the example of telecommunication consumption, in year 2000, the telephone penetration rate was only 15% in China, according to common rules of communication, market will be saturated only when telephone penetration rate reaches around 40%. This potential market not only provides the driving force to the development of information industry, but also provides enormous demand energy for the adjustment of Chinese economic structure.
(4) Information industry provides necessary technical support for the adjustment of economic structure adjustment
The rapid development of information technology has effected and penetrated into various aspects of social life. Rapid development of network economy represented by Internet e-Commerce has made the connection between production and consumption more direct and more in harmony, reducing a great amount of medium links, thus greatly decreasing the cost of economic and social activities while improving the operation efficiency of economy. Development of information technology and its penetration in various economic sectors has provided powerful technological support for the adjustment of Chinese economic structure.
5. Information technology provides new management modes for adjustment of economic structure
Information technology provides advanced means for economic management. Advanced managerial tools based on information technology such as MPR II, ERP, CRM, CIMS have been applied in the enterprises management, e-Commerce develops rapidly. The application of information technology in management strengthens the knowability, adjustability and orderliness on management, have raised management efficiency and economic benefits, accelerates the advancement of production organization, business mode and management. System, which becomes the micro foundation for adjustment of economic structure and transformation of economic growth way.
1.2.3 Issues need to be further solved for the development of Chinese information industry
Although the Chinese national information industry has achieved great development, compared with international information industry tycoons with multimillions of turnover and global sales strategy, the Chinese information industrial enterprises, even electronic information top hundred enterprises appear to be very weak. At present, it should be stated in this way that China is a big country in world information industry, but not powerful country, its development of information industry still faces many problems need to be solved.
1.2.3.1 Obvious gaps between Chinese electronic information enterprises and enterprises of same kinds in the world
The Chinese electronic information enterprises normally are rather small in their scale, and weak in profit. earning. Take top hundred enterprises, the dragonhead of electronic information industry as an example, though their scale and profit have hit a new level, and emerged a batch of large enterprises groups who are trans-area, trans-trade, trans-ownership system and trans-national operation, while some enterprises' international competitiveness have had obvious improvement, compared with top hundred information technology enterprise in the world, at present, Chinese electronic information enterprises still have great gaps with the advanced international enterprises in terms of scale , profitability and profit capabilities.
(1) Obvious gap in business scale
Chinese electronic information enterprises' active implementation of big companies has had its preliminary effect, and formed a groups of big enterprises with quite strong international competitiveness and represented by the Legend Group. However, the Chinese electronic information enterprises are developed in quite short period and with low starting point, at present, the scale of Chinese electronic information enterprises is still of big gaps compared with that of "Top hundred information technology companies in the world".
In terms of business scale, among "Top hundred information technology companies in the world", the total business income of top ten companies is US$ 372.69 billion, while the total business income of top ten out of Chinese top hundred electronic information enterprises is RMB 231.06 billion in year 2000, which equals to US$ 27.91 billion when converted according to the average exchange rate 8.28:1, being only equivalent to 7.5% of the former.
Comparison chart of business income of global top ten and Chinese top ten in scale (figure 5-8) shows that the total business income of Chinese top ten out of the top hundred electronic information enterprises have great gaps with that of global top ten out of the global hundred information technology companies. Furthermore, the total business income of Chinese top ten US$ 27.9058 billion is only close to that of the ranked fifth Nokia company US$ 29.243 billion, and being only equivalent to 31% of that of IBM US$ 90.092 billion which ranks the first in scale.
(2) Weak capability to earn profi
Compared with the past top hundred, the profit of top hundred Chinese electronic information companies in year 2001 features in high-speed increase. The total profit amount of current top hundred enterprises reached RMB 26.9 billion, increased by RMB 8.4 billion, with an increase of 45%, accounting for 71% of total profit of the entire industry, enterprises with profits exceeding RMB 100 million hit 50. But, compared with the world advanced level, the profit level of top hundred Chinese electronic information enterprises is still rather low.
As shown in the Figure 5-9, there is a dramatic gap in the profits of top ten of top hundred Chinese electronic information enterprises and that of global information top hundred. Every enterprise, compared with the foreign enterprises having the same rank, has a profit less than 5% of the latter. The Huawei Company enjoying No. 1 in the profit list has a profit amount of US$ 350 million, only equivalent to 3.2% that of VRIZON Company whose profit is US$ 11 billion.
High or low profit capability is the foundation for further development of enterprises. Business income profit rate is the rate of enterprise' profit versus business income, is one of indexes representing the enterprise' profit capability. Compared with the world high level IT enterprises, the business income profit rate of Chinese top hundred electronic information technological composite ranking out of top hundred is 19.7%, while that of top ten Chinese electronic information enterprises out of hundred is only 5.5%, less than one third of the former. Furthermore, with the exception of top first, sales profit rate of other 9 enterprises is all dramatically lower than that of top ten having the same rank out of global top hundred information enterprises (shown as figure 5-10 and figure).
Chinese electronic information enterprises relatively do not enough efforts in the research and development, with weak technological innovation capability and low technological added value of products and small profit margin, and are in an unfavorable position in the competition of entire value chain. Therefore, compared with those international consortiums with self-intellectual property and rich international marketing experience, they are in the inferior position in terms of value and profit creation.
Main restrictive factors existed for the development of Chinese information industry
1. Incomplete macro management system
(1) Information industry is lack of legislative and regulatory safeguard system
For many years, there have been some problems existed in the legislation of Chinese information industry, which lead to the incompleteness of laws and regulations construction in the information industry. They re mainly: 1. The guiding ideology is rooted on management, not the power of economic entity, while emphasizing the management right of department, not the economic decision-making power of business entity; 2. no separation of the functions of government from those of the enterprise; 3. department legislation and repetitive legislation. Because it is difficult to coordinate the benefits of all relevant authorities, the legislation course if postponed, and department legislation can not realize the legal fairness and social effect; 4. legislation lags behind, this is especially prominent in the newly emerged e-Commerce. If these problems are not solved, the establishment of Chinese information industry safeguard system and the perfection of relevant legislative and regulatory construction will surely be influenced.
(2) Scientific research out of line with application, and industrialization lagging behind
The widely existing ideology of "stressing industrialization, disfavoring informatization"; "stressing material resources, disfavoring information resources" and "stressing hardware disfavoring software" in the society is one of the important factors affecting the Chinese informatization course and information industry development. The root cause for the occurrence of these ideas is that the characteristics of high penetration and high added value of information technology and the enormous function of information industry on transforming the traditional industry and accelerating the optimization and upgrading of the industry structure are not deeply realized. This shows that the entire society lacks full-round and deep understanding of the fact that information technology or information industry plays an very important role and influences on the national economy and national security, while lacking the deep research on the relationship between the national informatization construction and state industrialization, modern construction and development, and the informatization level to improve national competitiveness and people's living quality.
In addition, enterprise informatization transformed degree is quite low, scientific research is out of line with application, and industrialization lags behind. According to the investigation made by the National Science and Technology Commission on the benefit converting from 4181 items of information technology scientific research fruits, those of conversion benefit exceeding RMB 750 thousand only account for 10%, while the non-converted is as high as 58% (see figure 5-3). Therefore, the information industry and information technology application have not fully played its propelling role to the economic development.

(3) Information resources development and utilization and development of information services lagging behind the network construction
Although Chinese network construction is not yet perfect, but compared with the construction of information network, the information resources development and utilization and development of information services lag behind more obviously. Development of information resources such as Databases and websites are dispersed, and lack of coordination and planning; the market mechanism of information resource development and compensated use have not been formed; the mode and extent of information services can not meet the demand of the enterprise information development, and the services system has not yet been established. Main reasons are as follow: market mechanism of development and compensable, services of information resources has not shaped; lack of protection in information intellectual property; weak awareness of the entire information resource exploitation and utilization; incompleteness of information resource exploitation management system; weak foundation work, etc. Because of the lagging of ideology, all circles of society do not consider the information resource sharing the equivalent important basic and strategic resource as energy and materials have for the national economy and social development. The central government and local government do not set up the unified information resource administration department, while the regulation system for guiding the exploitation and utilization of information resource is not yet perfect. The information resource exploitation and utilization shall apply the relevant technology and theory, but the foundation work such as information technology research and development, information security protection measures, fostering of professional talent and training of information technology application ability of all kinds of people still can not meet the requirement.
(4) Economy management system can not meet the requirements of information industry development
After the establishment of Ministry of Information Industry in 1998, although the State carried out a series of reform for the information industry management system, the long existed system barrier problems in the information systems was hard to be established, such as problems of integration of "three nets" (telecommunication net, computer net, cable television net), opening of telecommunication for competitiveness, and the information resource circulation system etc. Network integration is not only the development tide of world information industry, but also has been the common understanding of the Chinese "three nets" operators. However, due to the multi management and benefit difference between departments, "three net" integration is hardly to be initiated. In addition, the Chinese telecommunication industry still have many limits on the introduction of competition in opening up to the domestic market, though the pattern of opening up to the overseas is set. In the information resource circulation, self confinement and self blockade are existed among departments as well as industries, a great deal of government information which should be available for the public services can not be utilized by the society due to system or regulation reasons, thus leading to the non-smoothness of circulation channels, and information services are lack of good macro environment. Although the databases in the country have been developed to more than 3000, the amount of data is small. It is reported that 90% of Chinese information resources have not been electronized, and the non-smoothness of management system is an important restrictive factor.
Because of the lack of explicit authority in system, no one works out the overall planning and policies for information technology, information products and operation, the exploitation of information resource is obviously lagged behind, and the efficiency of information industry has been greatly decreased. Since the information industry is a high-tech industry featuring in high input, high-risk speedy technology update, etc, there are many restrictive functions if it is managed in the normal industrial economy management pattern. For example, management of multi-government organs is not good for the competent authority to play its leading role to information industry; and slow decision making of government organs is not suitable for the characteristics of quick advancement of information technology and rapid development of information industry.
2. Weak innovation of information technology
(1) Shortage of information technology talents
At present, China is short of electronic information industry talents, while structural contradiction is serous, common laborer is in surplus, the high-level and compound talents and technological leading people are of severe shortage, and the state-owned large and medium-sized enterprises do not form the mechanism of holding talents. For the long term, due to system reason, some superior professional talents in Chinese electronic information industry, especially talents on software have greatly lost.
Shortage of information technology talent is a global issue, along with the informatization of enterprises in various regions in China and the development of e-Commerce, the conflict of talent shortage especially the shortage of senior compound talents will surely be more and more serious. In addition, the deficiency of application skills of information technological people is also the important reason restricting the development of Chinese enterprises informatization.
(2) Financing channel block restricting the information technology innovation
Information industry is a new industry of high input and high risk leaded by scientific research and development, the threshold of market entry is high, and its development needs huge amount of capitals. In order to get the huge capital for the development of information industry, all countries are injecting great effort to research, test all kinds of methods and mechanism such as risk investment, etc. Since and 1990s, the high-speed development of the US information industry is just the rapid development benefiting from the risk investment. Meanwhile, for China, because the system is not norm, the regulation is not complete, on one hand, this leads to the imperfect domestic risk investment mechanism, and far from undertaking the burden of supporting information industry development; on the other hand, it blocks international risk investment capitals entering Chinese information industry. Shortage of risk investment capital is the main stumbling block to the development of innovation enterprise, leading to the great gaps existed between China and foreign countries on the input to scientific research development funds. Some big international enterprises generally input more than 5% of sales income to the research and development, while Chinese electronic information enterprises input less than 1% of sales income for research and development, which makes it hard to realize the industrialization of scientific results.
(3) Information technology innovation system has not been shaped
Chinese information industry has low self-owned technology, and products with their own brand and self intellectual property among all products are rather small, few scientific research results are converted into commodity production, the technology innovation system with enterprise as the main body, while the integration of production, study, research and use has not been really set up in the majority of enterprises, and the problem of scientific research separating from production has never been solved from its root cause.
(4) Key information technology backward influences the national security
At present, there are mainly three kinds of key information technology influencing on the national security: application foundation type, key type and application type information technology
(a) Application foundation type information technology
Application foundation type information technology mainly includes key chip technology and special security operation system technology. At present, China still cannot produce high-speed CPU chip, and only several big companies in the world monopolize the CPU production. CPU chip is the core part of a computer, its manufacture can pre-set virus in the chip, if necessary, these viruses can be activated, and thoroughly destroy the whole computer system. The US Government has executed the special control on the export of cryptographic key chip, install the so-called "de-cryptographic key" special chip in all exported computers, which can manually started or automatically operated, to monitor the computer working situation and steal the information and send back to its country through network.
In the aspect of operation system, at present, kinds of computer LAN and personal computer in China normally apply some existing operation systems of American companies, which have the great disclosure potential. For example, Unix operation system applied by many Chinese local area networks has more than 50 hidden channels, hacker and hostile countries can use any of these channels to attack the system core.
(b) kernel-class information technology
The Kernel-type information technology includes cryptographic techniques, TECMPEST, information security platform, network attack and caution, security sense and monitor technology, etc. China has still not developed its own standard unified encryption techniques for network; database and personal computer, encryption techniques used by network and PC are mostly the available software from abroad.
(c) Application type information technology
The application type information technology includes security integration, virus protection, security analysis and inspection and evaluation, information security technical standard, fake proofing and inspection, computer crime filed investigation and evidence obtaining and inspection qualification technology, and material evidence sample information database construction, etc.
Take the computer virus as an example, with the gradual updating of computer technology and software, computer virus technology is keeping on developing. At present, what China mainly applies is static inspection virus technology, mainly represented by single computer static anti-virus software. But, because of endless emerging of new viruses and product after sale service and upgrading, etc., these anti-virus software are unable to deal with the attack by the continuously changed virus all around.
3. Structural problems are still obvious
Upon entering the 1990s, profound change has been occurred in the aspects of industry, product, market and enterprise structure as well as operation mechanism and management system in Chinese information industry. Information industry started to enter into the new phase of product upgrading and changing, and structure optimization and restructuring. But speaking from general, structural contradictions are still very obvious.
(1) Low-level similarity of product structure, most enterprises in small scale and convergence of regional industry layout
In the aspect of product structure, low-level repetitive construction leads to that production capability of many electronic information products is far greater than the actual output, even leads to the situation of supply larger than demand. On the other aspect, because the technical equipment is outdated, and can not meet the requirements of scale economy, compared with foreign advanced level, the Chinese electronic information products commonly share the problems of low grade, low quality, low price and poor market competitiveness, etc., cause what produced is not what required, supply of low-end products are larger than the demand, and supply of high-end products can not satisfy the demand. New technological products are imported to great extent, digitalized products, new type elements and components, communication equipment and system integration products are still dependent on the import or produced by joint ventures, i.e. sole-foreign funded, Chinese-foreign funded and Chinese-foreign cooperation ventures.
In the aspect of enterprise structure, majority of Chinese state-owned electronic information enterprises were established gradually due to the requirements of planning economy and war-preparation, the problems of "small but all-inclusive, large and all-embracing" are commonly existed. Through several adjustments and restructuring after opening-up, many enterprises structure has been improved, but majority of them are still far beyond the requirements of specialization and in big scale. Because the scale of enterprises is generally small, capital strength is weak, research and development input is low, which restrict the enterprises' innovation ability and market developing ability to great extent. Therefore, Chinese electronic information enterprises have quite weak composite competitiveness, and hardly take part in the international competition.
Furthermore, regional industry layout converges similar, low-level repetitive construction phenomenon still exists, the effective integration of resources cannot be realized and with severe waste.
(2) Unreasonable export structure
Chinese electronic information product export are mainly the medium or low grade products, short of export products with high technology, high added value and enjoying the self-owned intellectual property; for the export structure of electronic information products, common trade export amount is quite low, processing materials supplied by clients and processing imported materials are the main export trade ways; Among the export enterprises, the proportion of joint ventures is quite big, accounting for 70%, while the SOEs export amounts to rather small proportion; in the aspect of market development, foreign trade export enterprises have indifferent brand awareness on the international market, can not carry out effective sales activities, advertising and perfecting after sales service when focusing on certain market and region, therefore, the Chinese products, could not obtain the extensive identification on the international market. Electronic information product export markets are mainly concentrated on Asia, Europe and North America, almost reaching over 90% of the total export, while the newly emerged markets and other markets are relatively small, the export leeway is limited so, risk-proofing ability is quite small.
(3) Obvious contradiction of human resources structure
Large and medium sized enterprises generally are lack of ability to conquer the technological and market front edge, technical leader who can organize and lead big and important projects and brainstorm projects, lack of professional technical people of high level, compound and with team spirit; especially lack of people engaging in design, developing and marketing of integrated circuit design, software and system integrated engineering, computer and communication products, and most lack of senior management talents possessing large production management experience and good at capital operation. Though some problems occurred during the development course of Chinese information industry that should be urgently solved, these problems all are the problem during the development, and the obtained achievements in information industry are widely recognized. Looking ahead the 21 century, Chinese information industry will be developed in a faster speed, and will surely undertake the historical burden of rejuvenating the nationality.