UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9 PAGE: 0002 2. DSTI ORGANIZATION A. LARGE SINO-TAIWANESE ELECTRONICS JOINT VENTURE (JV) SET UP IN JIANGSU PROVINCE (PEOPLE'S DAILY - PD, 19 OCT). THE JIANGSU YUNTAI SALT TRANSPORTATION AND MARKETING COMPANY (CO) AND AN UNIDENTIFIED (UI) TAIWANESE CO HAVE JOINTLY ESTABLISHED THE YINYOU ELECTRONIC CO IN LIANYUNGANG //GEOCOORDS: 3436N/ 11913E//. THIS IS THE LARGEST EQUITY JV ELECTRONICS ENTERPRISE IN JIANGSU, WITH JOINTLY INVESTED CAPITAL OF USD 3.2 MILLION. THE FACTORY HAS SIX CARBON FILM CONSTANT RESISTOR PRODUCTION LINES WITH A TOTAL ANNUAL PRODUCTION CAPACITY OF 2.05 BILLION RESISTORS OF DIFFERENT TYPES. B. STATE SCIENCE AND TECHNOLOGY COMMISSION (SSTC) URGES HIGH TECH ENTERPRISE DEVELOPMENT ZONES TO SEEK NEW TECHNOLOGIES (SCIENCE AND TECHNOLOGY DAILY - STD, 30 OCT). THE ARTICLE RECALLS THAT THE 31 NEW HIGH TECH ZONES WERE SET UP BY SSTC IN 1991 TO ENCOURAGE ENTERPRISES TO APPLY THE LATEST SGIENTIFIC AND TECHNOLOGICAL (S AND T) DEVELOPMENTS TO PRODUCTION OF CONSUMER GOODS. IT ALSO NOTES THAT MOST NEW TECHNOLOGIES BEING APPLIED WITHIN THE ZONES ARE THE FRUITS OF RESEARCH AND DEVELOPMENT (R AND D) WORK IN STATE-RUN RESEARCH INSTITUTES (RI) AND CENTERS. MANY STATE-RUN RI'S HAVE OPENED UP THEIR OWN HIGH TECH ENTERPRISES IN THE ZONES. HOWEVER, ENTERPRISES WITHIN THE ZONES ARE RAPIDLY RUNNING OUT OF NEW TECHNOLOGIES TO APPLY, BECAUSE SCIENTISTS WORKING IN RI'S WOULD RATHER SELL THEIR S AND T RESULTS TO PRIVATE ENTERPRISES. THESE CONTRADICTING INTERESTS ARE THE RESULT OF CHINA'S AMBIGUOUS PROPERTY SYSTEM. THE ARTICLE RECOMMENDS THAT SSTC SET UP A SHAREHOLDING SYSTEM, UNDER WHICH CHINA'S STATE-RUN RI'S SHARE IN THE OWNERSHIP OF NEW ENTERPRISES IN THE ZONES AND, AS A RESULT, ALSO OBTAIN A SHARE OF THE PROFITS OF THESE ENTERPRISES. (SEE ALSO 1-15 SEP 92 DSTI REPORT.) CG. SSTC MERGES TWO KEY BEIJING S AND T PROMOTION AGENCIES INTO "CHINA TECHNOLOGY MARKET ASSOCIATION" (CHINA DAILY - CD, 30 OCT). SSTC HAS AMALGAMATED TIE "CHINA TECHNOLOGY MARKET PROMOTIONAL COUNCIL" AND THE "CHINA TECHNOLOGY MARKET RI" INTO THE NEW ASSOCIATION IN A MOVE TO PROMOTE CHINA'S FLEDGLING TECHNOLOGY MARKET. THE NEW ASSOCIATION REPRESENTS OVER 3,000 RI'S, INSTITUTES OF HIGHER LEARNING, AND BUSINESS ENTERPRISES. IT WILL ATTEMPT TO IMPROVE COOPERATION IN CHINA'S TECHNOLOGY MARKET NETWORK, AS WELL AS TRAIN ADMINISTRATIVE PERSONNEL, AND PROMOTE RESEARCH AND EXCHANGES. D. STATE PLANNING COMMISSION (SPC) SETS UP NATIONAL LEVEL ELECTRONICS INDUSTRY EXPERIMENTAL CENTER IN SHENZHEN SPECIAL ECONOMIC ZONE (SEZ) (CD, 31 OCT). UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9
UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9 PAGE: 0003 THE SPC WILL PROVIDE 50 MILLION YUAN IN OPERATING CAPITAL AND THE SEZ GOVERNMENT WILL PROVIDE ABOUT 50 MILLION YUAN IN LAND AREA TO SET UP THE NEW CENTER. THE NEW CENTER WILL CARRY OUT INDUSTRIAL EXPERIMENTS ON ELECTRONICS PRODUCTS MANUFACTURED BY THE ELECTRONICS INDUSTRY WITH NEW AND HIGH TECHNOLOGIES. 3. DSTI FINANCE AND MANAGEMENT A. PLA'S CHINA XINXING CORPORATION (CORP) ESTABLISHES SUBSIDIARY IN HONG KONG (CD, 22 OCT; SOUTH CHINA MORNING POST - SCMP, 27 OCT). THE TRADING ARM OF THE PLA GENERAL LOGISTICS DEPARTMENT (GLD) HAS SET UP A HONG KONG BRANCH IN COOPERATION WITH THE HONG KONG CO, CHEUNG KONG HOLDINGS. XINXING CHAIRMAN ((ZHANG)) BIN AND CHEUNG KONG CHAIRMAN ((LI)) KASHING PRESIDED AT THE OPENING CEREMONY ON 26 OCT. XINXING IS THE SOLE EXPORTER OF MILITARY EQUIPMENT PRODUCED BY THE MASSIVE GLD ENTERPRISE STRUCTURE, BUT WISHES TO PLAY DOWN ITS MILITARY ROLE. THE CORP OPERATES OVER 100 LARGE FACTORIES IN CHINA, SOME OF THEM IN REMOTE MOUNTAINOUS AREAS. XINXING DESIRES TO DEVELOP EXTENSIVE ECONOMIC AND TECHNOLOGICAL TIES WITH FOREIGN BUSINESSES TO EXPLOIT THE PRODUCTION POTENTIAL OF THESE FACTORIES. THE HONG KONG OFFICE WAS SET UP TO PROMOTE SUCH FOREIGN COOPERATION. (SEE ALSO 16-30 SEP 92 DSTI REPORT. ) SG1A (FIELD COMMENT - B. STATE COUNCIL’ S ECONOMIC AND TRADE OFFICE (ETO) PROMISES TO DELEGATE POWERS TO ENTERPRISES AS PART OF ECONOMIC REFORMS (SCMP, 23 AND 30 OCT). THE ETO, UNDER THE DIRECTION OF VICE PREMIER ((ZHU)) RONGJI, HAS PROMISED THAT IT WILL TAKE BOLD STEPS OVER THE COMING YEAR TO GIVE GREATER AUTONOMY TO STATE-RUN ENTERPRISES. IT IS ETO'S INTENT TO PROVIDE ONLY MACROECONOMIC GUIDANCE TO INDUSTRY AND COMMERCE, WHILE ALLOWING ENTERPRISES TO ASSUME MANY OF THE REGULATORY FUNCTIONS FORMERLY RETAINED BY THE STATE. THE SPC WILL ALSO ADJUST ITS FUNCTIONS TO INSURE FURTHER SEPARATION OF THE RESPONSIBILITIES OF GOVERNMENT AND ENTERPRISES, TO REDUCE INTERFERENCE OF ADMINISTRATIVE DEPARTMENTS (DEPT) IN THE DAY-TO-DAY OPERATIONS OF STATE-OWNED ENTERPRISES. IT IS HOPED THAT THE NEW REFORMS WILL ENCOURAGE FIRMS TO ENTER MARKET COMPETITION, WITH RESULTANT IMPROVEMENT IN INDUSTRIAL EFFICIENCY AND REDUCTION OF LOSS~MAKING ENTERPRISES. (SEE ALSO 1-15 AUG 92 DSTI REPORT. ) C. ARTICLE IN ARMY PAPER URGES CAREFUL SCIENTIFIC ASSESSMENT OF THE RELATIVE VALUE OF S AND T IN MODERN WARFARE (LIBERATION ARMY DAILY - LAD, 23 OCT). AN ARTICLE BY ((SU)) ENZE (STC 5685/1869/3419) (BACKGROUND UNKNOWN) WARNS THAT, ALTHOUGH HIGH TECHNOLOGY WAS GIVEN PROMINENCE DURING THE PERSIAN GULF WAR, ITS TRUE VALUE REQUIRES CAREFUL SCIENTIFIC ASSESSMENT. THE AUTHOR UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9
; UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9 PAGE: 0004 QUOTES UI U.S. MILITARY EXPERTS IN ASSERTING THE GULF WAR WAS "NEITHER TYPICAL NOR EXEMPLARY" AND EXPRESSING SOME RESERVATIONS ABOUT THE ACTUAL IMPORTANCE OF HIGH TECH IN THE VICTORY OF THE COALITION FORCES. EVERY PIECE OF HIGH TECH WEAPONRY EMPLOYED IN THE GULF WAR POSSESSED CERTAIN "SHADOWS" OR IMPERFECTIONS. IN ADDITION, SINCE § AND T ITSELF IS ALWAYS DEVELOPING, ONE MUST SEARCH FOR FACTS AND AVOID EXAGGERATION IN ASSESSING THE IMPORTANCE AND ACHIEVEMENTS OF HIGH TECHNOLOGY IN WARFARE. D. MORE INFORMATION ON "ALL-ARMY CONFERENCE ON APPLYING ARMY LOGISTICS S AND T ACHIEVEMENTS" HELD IN JINMEN IN MID-OCT (LAD, 28 OCT). IN ADDITION TO DISCUSSING METHODS OF APPLYING LOGISTICS S AND T DEVELOPMENTS, THE CONFERENCE LEARNED THAT, SINCE 1986, THE GLD SCIENTIFIC RESEARCH SYSTEM HAD COMPLETED OVER 13,000 S AND T ACHIEVEMENTS. OVER 9,600 OF THESE ITEMS HAVE BEEN PUT TO USE, WITH 20.6 PERCENT OF THEM EARNING 5.2 BILLION YUAN THROUGH EXTENSIVE EMPLOYMENT WITHIN THE ARMY. THESE ITEMS INCLUDE A SERIES OF NEW ARMY KITCHEN UNITS, BULLET-PROOF VESTS, AND BEAN CURD PRODUCTION LINES. (SEE ALSO 1-15 OCT 92 DSTI REPORT. ) 4, SIGNIFICANT DEFENSE R AND D ACHIEVEMENTS A. HUNAN NATIONAL DEFENSE § AND T UNIVERSITY DEVELOPS SERIES OF NEW COMPUTER PRODUCTS NEW CHINA NEWS AGENCY - NCNA, 16 OCT). THE UNIVERSITY'S COMPUTER DEPT HAS DEVELOPED A RANGE OF HARDWARE AND SOFTWARE SYSTEMS, AS WELL AS THE ASSOCIATED DISKS, TAPES, AND PROGRAMS. THE "SYMBOLIC/MACY 1.00 COMMERCIAL BOOKKEEPING SYSTEM" APPLIES LOCAL AND INTERNATIONAL DATA BASES IN MANAGING ACCOUNTS FOR UP TO 99 CO'S. THE "COMPUTER STOP SIGNALLING DEVICE" APPLIES POWER SOURCE SWITCHING TECHNOLOGY, AND CAN STORE LARGE QUANTITIES OF PHONETIC DATA AND PRODUCE NATURAL AND EASY-TO- UNDERSTAND SOUNDS. THE "GKD VIDEO/VL.O USER-INTERFACE DEVELOPMENT ENVIRONMENT SYSTEM" EMPLOYS AUTOMATICALLY GENERATED MULTIPLE WINDOW INTERFACE SOFTWARE FOR USE IN INDUSTRIAL DESIGN AND MANUFACTURING. B. CHONGQING HUACHUAN MACHINERY FACTORY DEVELOPS "ELECTRONIC DIGITAL HORIZONTAL AND ANGULAR MEASUREMENT INSTRUMENT" (NCNA, 29 OCT). THE INSTRUMENT CONTAINS AN ADVANCED ELECTRONIC SENSOR AND DISPLAY CIRCUIT WHICH PERMITS PRECISE MEASUREMENTS IN BOTH THE HORIZONTAL AND ANGULAR PLAIN SIMULTANEOUSLY. THE NEW EQUIPMENT IS 50 TIMES MORE ACCURATE THAN CONVENTIONAL BUBBLE-TYPE MEASURING INSTRUMENTS. IT HAS BROAD APPLICATION IN THE CONSTRUCTION, MACHINE BUILDING, SHIP TRANSPORT AND NATIONAL DEFENSE INDUSTRIES. C. UI MINISTRY OF MACHINE BUILDING/ELECTRONICS INDUSTRY (MMBEI) RI DEVELOPS "UNIVERSAL CODED CHARACTER SET" (CD, 30 OCT). RI'S WORKING WITH THE NEW SET HAVE UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9
UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9 PAGE: 0005 ALREADY CODED MORE THAN 20,000 CHINESE CHARACTERS FOR USE IN ALL TYPES OF COMPUTERS. THE NEW SYSTEM SHOULD END CONFUSION IN EMPLOYMENT OF COMPUTER TECHNOLOGY AND IN DEVELOPMENT OF THE INFORMATION INDUSTRY. IT SHOULD ALSO ASSIST CHINA IN PROMOTING TECHNICAL COOPERATION AND INFORMATION EXCHANGES WITH FOREIGN FIRMS. D. UI MMBEI RI DEVELOPS CHINA'S FIRST "INLAND RIVER RADAR TRAFFIC CONTROL SYSTEM" (PD, 30 OCT). THE NEW SYSTEM CAN PERFORM MODERN MANAGEMENT FUNCTIONS, SUCH AS MONITORING RIVER TRAFFIC, NAVIGATION, VIDEO RECORDING, AND DATA PROCESSING. THE FIRST SYSTEM OF THIS TYPE HAS BEEN INSTALLED AT THE "DASHI RADIO MONITORING STATION" IN ZHENJIANG //GEOCOORDS: 3213N/ 11926E// ON THE YANGZI RIVER IN JIANGSU PROVINCE. E. NANJING LIAN XIANG GROUP INTRODUCES "486/66EISA HIGH PERFORMANCE MICROCOMPUTER" (PD, 31 OCT). THE GROUP PRESENTED THE NEW COMPUTER, WHICH IT CLAIMS IS THE FASTEST IN THE WORLD, TO A CONSUMER REPRESENTATIVES MEETING IN NANJING RECENTLY. THE GROUP HAS ALSO DEVELOPED A NUMBER OF OTHER MICROCOMPUTERS IN THE SAME SERIES WHICH HAVE BECOME POPULAR INTERNATIONALLY. THESE INCLUDE THE 486/50EISA, THE 486/33EISA, TIIE 386/40W, AND THE 386/338 MODELS. 5. MINISTRY OF AEROSPACE INDUSTRY (MASI) A. MASI INDUSTRIES IN SHAANXI PROVINCE REPORT DRAMATIC GROWTH IN CIVILIAN PRODUCT OUTPUT (PD, 19 OCT). THE 24 AVIATION INDUSTRIES IN THE PROVINCE INVESTED 526 MILLION YUAN IN PURCHASING 54 HIGH TECH PRODUCTION LINES FOR CIVILIAN GOODS DURING THE 7TH FIVE YEAR PLAN (FYP). AS A RESULT OF THIS MASSIVE INVESTMENT, THE PROVINCE'S AVIATION ENTERPRISES HAD A TOTAL OUTPUT VALUE FOR CIVILIAN GOODS DURING 1991 OF 1.24 BILLION YUAN, REPRESENTING 25 PERCENT OF THE TOTAL PRODUCTION OF ALL MASI ENTERPRISES DURING THE YEAR. DURING THE FIRST 6 MONTHS OF 1992, THESE ENTERPRISES INCREASED THEIR OUTPUT VALUE BY 40.89 PERCENT, SALES INCOME INCREASED 56.8 PERCENT, AND PROFITS AND TAXES 853.36 PERCENT. B. CHINA SHANGHAI AVIATION INDUSTRY AND U.S. MCDONNELL-DOUGLAS (MD) CORPS TO COMPLETE MD-82/83 CONTRACT ON SCHEDULE (CD, 21 AND 25 OCT). THE JV CONTRACT, SIGNED IN 1985, CALLED FOR THE PRODUCTION OF 30 MD-82 AIRLINERS. THE AGREEMENT WAS EXTENDED IN 1991 TO INCLUDE FIVE ADDITIONAL MD-82S AND FIVE MD-838, THE LATTER TO BE EXPORTED TO THE U.S. THE LAST TWO MD-83S ARE CURRENTLY ON THE ASSEMBLY LINE. THE CONTRACT IS TO BE COMPLETED BY THE END OF 1993. HOWEVER, THE U.S. CORP IIAS SIGNED A NEW AGREEMENT WITH CHINA, WORTH USD 1.2 BILLION, TO BUILD 20 147-SEAT MD-80 AND 20 158-SEAT MD-90 TWIN ENGINE JET LINERS. (SEE ALSO 16-30 JUN 92 DSTI REPORT. ) UNCLASSIFIED Approved For Release 2000/08/10 : CIA-RDP96-00792R000200580004-9