IT industry needs more govt support

Cloud computing and the mobile Internet are set to boost China's information technology industry over the next years, but the central government should provide more support to domestic IT companies, industry insiders said.

The rapid adoption of cloud computing technology by telecom carriers, finance institutions and government organizations was able to fuel the industry this year, but the lack of large-scale public cloud computing servers may hamper the growth of the industry in the long run, said Jiang Guangzhi, director of the software and IT services department at the Beijing Municipal Commission of Information and Technology.

The industry will have another driver as an increasing number of traditional Internet companies are increasing investment in the mobile sector, Jiang said.

"The combination of cloud computing and the mobile Internet will be the pillar of the industry," he said, calling for more government support.

"The central government should release more preferential policies as well as financial support as the nation is expecting IT innovation to boost the economy," Jiang said.

China's startup IT firms are facing financing difficulties this year. The nation has raised about $2.7 billion from the venture capital market in the third quarter, a year-on-year drop of 67.9 percent, said Alex Chen, partner at SSG Capital, a Beijing-based VC investor.

"Start-ups may find it's hard to raise fund because China's VC investors are eyeing the private equity market for faster returns," said Chen.