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<div>Enter the Protectionist Dragon? China's software and standards policies stir debate and reflection</div> <div>Greg Goth</div> <p>To encourage the domestic software industry's development, Chinese policy makers have written a series of regulations in the past five years. These give Chinese software developers tax incentives and mandate that government buyers give preference to domestic software. These regulations also encourage the development of open source software over proprietary software. These policies have precipitated concern and criticism from China's trading partners.</p> <p>At the heart of the debate lie two perceptions of how to achieve market equilibrium. The rules of the game are changing fast, and the entrenched bureaucratic way of running the Chinese economy is butting against the imperatives of the global marketplace.</p> <p></p> <p>The Software Drain: Outdated Software Costs Companies Millions <div>Benjamin Alfonsi</div></p> <p>While it might sound like an IT urban legend, the "software drain" is a very real phenomenon according to a recent report by the Business Performance Management Forum. The report is based on a survey of 226 US-based IT professionals and C-level executives (CEOs, CFOs, CIOs, CTOs) conducted in the third quarter of 2004. Respondents ranged from small and mid-market businesses to global corporations; about a quarter were companies with revenues of US$500 million or more.</p><p>Among the findings, seventy percent of the respondents reported having redundant or outmoded software applications, and 73 percent said they have no mechanism in place to combat the problem. Of these, 44 percent estimate that such applications consume more than a tenth of their company's IT budget.</p>
China trade policy, market equilibrium, software maintenance

B. Alfonsi and G. Goth, "Enter the Protectionist Dragon? China's software and standards policies stir debate and reflection," in IEEE Software, vol. 22, no. , pp. 83-87, 2005.
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