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To: Cameron Lang who wrote (42587)7/5/1999 2:11:00 PM
From: John Rieman  Respond to of 50808
 
China's government is controlling DVD development. Maybe it won't be like VCD..................................

chinadaily.net

Guangdong spurs DVD development
GUANGZHOU _ The vanguard of China's electronic's industry, Guangdong Province, is sparing no effort to develop and manufacture digital video disc (DVD) players and discs.

The province's aim is to make its DVD industry a new growth point of the electronics sector, which is one of Guangdong's three pillar industries, said Liu Junxing, a director of the provincial electronics and machinery department.

DVD is the world's state-of-the-art visual and audio technology, and DVD players and discs enjoy promising market prospects at home and abroad, he said.

This year is the essential year for the province's DVD industry to take off, Liu said. He argued that key bottlenecks that formerly restricted the development of the industry have been broken through _ any hesitation means nothing but loss of markets.

Zhang Hongcheng, general manager of the Guangdong Fab Electrical Appliance Co Ltd, said the favourable factors for the development of the province's fledgling DVD industry were:

ù The average price of DVD players has gone down to about 2,500 yuan (US$301) from 4,000 yuan (US$482) last year and the price of DVD discs has fallen to about 50 yuan (US$6), making them much more acceptable to consumers;

ù The government has allowed eight production lines to specialize in the production of DVD discs, with annual production capacity of 5 million discs, giving consumers greater incentive to buy DVD players;

ù Digital TVs are in mass production and easily available, smoothing the way for acceptance of DVD players.

Guangdong Fab Electrical Appliance Co Ltd is a Shenzhen-based private enterprise and one of a handful of manufacturers recently selected by the provincial authorities to specialize in the development and mass production of DVD players.

The enterprise is manufacturing "FAB-8000A" DVD players and is focusing attention ad hoc on developing DVD players that can be upgraded.

The province's strategy is to unite the development forces of the selected DVD manufacturers under the macro-control of the provincial authorities to keep the development of the sector right on track, Liu said.

"With joint efforts, we will be able to avoid duplication of DVD projects and prevent electronics manufacturers from rushing headlong into the sector," the director said.

And the concerted efforts will better position the province's DVD industry to develop and manufacture crucial DVD components and parts, to bargain with foreign counterparts and to avoid a scramble for market share, he said.

The director said the province encouraged its DVD manufacturers to forge extensive co-operative ties with their foreign counterparts.

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Date: 05/30/99
Author: Zhan Lisheng
Copyright© by China Daily