Fujian to boost information industry

The information industry in East China's Fujian province, one of the province's three major industries, will get more support from the government this year as its growth sagged because of the weakening global economy, said a senior official.

Shao Yulong, director-general of the Fujian information technology department, said at a news conference in the capital city Fuzhou on Wednesday that a government-sponsored venture fund has already been set up to invest in startup or growing IT companies registered in the province.

The fund, with a total amount of no less than 400 million yuan ($63 million), will get 100 million yuan from the provincial government's fiscal revenue. The rest will be raised from private social capital.

“The government-sponsored fund will ask for less returns from IT companies than other venture capital to promote their development,” Shao said, adding that qualified candidates should be innovative in technology or have a great potential market place.

The first software company benefiting from the fund will soon go public and 30 percent of the venture fund will be used for such investment in the first year of its establishment, Shao said.

In addition, the province will encourage the growth of LED technology that can help save energy, the techniques of the Internet of Things, the integration of telecommunications networks, cable TV networks and the Internet, as well as expanding the Beidou satellite navigation technology for civil use.

From last year, information enterprises in Fujian have been encouraged to develop the navigation system for civil-oriented services. Some technologies have already been put on a trial use in the fishing industry, Shao said.

According to statistics, in 2011 the added value of the province's information industry reached 193 billion yuan, which accounted for 11 percent of its gross domestic product.

In order to help the industry grow larger, Shao said the province encourages pilot enterprises to embark on merger and acquisition deals in other provinces or overseas. The government will give subsidies to those companies to a maximum of 10 million yuan.