At the seminar to inaugurate China's independent national computer industry, Hong Kong's Culturecom Holdings Ltd. announced its brand-new embedded universal system technology structure and "V-dragon Midori embedded technology industrial standard". The standard, with its wholly Chinese owned intellectual property, will lower the computer chip price to US$20 to US$35. The price of desktop computer using the chip will drop to US$200 to US$250.
The standard will give birth to a cheap components production system, because it adopts the Linux operating system, which is completely free of charge. Furthermore, the cost of manufacturing a computer consists of 5 percent of material, 3 percent of processing, 12 percent of sales management, and 70 percent of production authorization fee and intellectual property fee. Only 10 percent is left as profit. If the Chinese-owned standards are adopted, the 70 percent intellectual property fee will be saved.
The Chinese network computer worth around 2, 000 yuan (US$242) caters for ordinary people's consumption level.
At present, the Chinese government has mapped out a development strategy for the intelligence-related home electric appliance industry. Numerous traditional household electric appliance enterprises are now facing a restructuring period. The new industrial standard has gained support from Datang Telecom Technology Co., Ltd, Taiwan Chutung Company and American Hughes Network Systems, etc.
(People's Daily February 12, 2004)
