China targets double-digit growth in software, IT service industry

The Dollar Business Bureau

China is looking to achieve a 13% annual growth in its software and IT service industries between 2016 and 2020.

On Tuesday, the government released a five-year plan for the industry, underlining that it will support the development of software and IT service companies and will encourage them to become influential and competitive industry leaders.

The Ministry of Industry and Information Technology (MIIT) established a goal for 2020, that industry business revenue should exceed 8 trillion yuan (about $1.2 trillion) with average annual growth of more than 13% from 2016 to 2020.

MIIT said Chinese companies should acquire leading innovative abilities and significant advantages in key technological sectors including artificial intelligence, cloud computing and big data and virtual reality, state-run Xinhua news agency quoted the ministry as saying. 

The MIIT also released a separate plan that underlined that China will support exploration of the 5G standard and commercialise 5G technology by 2020. 

The annual turnover of China's information industry reached 17.1 trillion yuan in 2015, according to the MIIT.

China's services industry has been growing at a stronger pace in October as new business picked up, prompting companies to undertake their expansion plans and hire more workers.