Tuesday, March 11, 2008

Bye bye MII

3/11/2008, According to the new organization renovation of Chinese government, the industry managing function of National Development and reform commission, the total function except nuclear electricity of nation defense science commission, Minister of information industry, information office under state council will be merged into a new ministry: Industry and information ministry. The chief function of this new ministry will be:

Make plan , strategy and standard on industry development;
Monitor the everyday work of the all industry;
Promote innovation on important equipment and technology
Manage the communication industry
Promote the information application
Guarantee information secure of the whole country

The establishment of this new ministry belongs to a bigger organization renovation in China. The renovation is for improving the efficiency of government. But don’t expect it will soon have good result on communication industry.
First, it doesn’t merge the function of state-owned assets supervision and administration commission of the state council (SASAC) which is the large share holder of all 5 services providers in China. Without SASAC, I don’t think this new ministry will have any big difference with the former MII。
Secondly, it doesn’t merge the function of SARFT which is responsible for the radio and television, film business. The communication industry is converging, except in Chinese government.
From my opinion, I think an organization like FCC is more important than such kind of organization renovation. Also the market open policy is more important than the reshuffle of the five carriers. Usually, after every renovation or reshuffle, there will be a long stagnant period, then this time, how long will it be?
The leaders of China look the information technology very important, but I think they don’t understand how important and how to use this information technology.

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