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China plans to boost its software exports to US$10 billion by 2010, as part of its bid to evolve from a manufacturing powerhouse to a major player in innovation and services.

To reach that goal, China's software exports will have to grow by 25 percent per year, according to a document jointly issued by the Ministry of Commerce, the State Administration of Taxation (SAT) and seven other central government agencies.

The document, posted on SAT's website, says the government's goal is to foster a group of globally competitive software firms with their own brands and intellectual property rights.

Software firms will receive preferential treatment in regard to taxation, borrowing and foreign exchange controls, among other benefits.

In the face of increasing friction with major trading partners in relation to goods, China has drafted an ambitious plan to increase trade in services from to US$400 billion by 2010. Trade in services was valued at US$160 billion in 2005.

The development of the software industry is a key part of this strategy.

According to figures from the Ministry of Commerce, China exported US$3.6 billion worth of software and related services in 2005, a year-on-year rise of 28 percent.

(Xinhua News Agency October 10, 2006)