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SMART CARDS NEWS ON CHINA

 CONTENTS:

  February 2005 Issues

   • Bankcard News
   • Telecom News
   • General News
   • Smart Cards News in General
   • Vendors' News

  Other Issues


Bankcard News

• China Merchants Bank has issued over 400,000 international debit cards
By the end of 2004, China Merchant Bank has a total issuance of 400,000 its international debit cards ("Yikatong" gold card and "Gold Sunflower Card") of Visa and Mastercard brands. According to the responsible spokesman, among the cardholders of its international debit cards, the major parts of them are the middle and senior executives of the reputable companies that will become the main and stable clients to support the further growth of the retailing business of this bank.
The "Yikatong" gold card - the first financing international card with comprehensive financing card in China and the Gold Sunflower card - the first platinum financing card in the Asia Pacific region, are targeting the middle and senior clients who have the assets over RMB50,000 and RMB500,000. Hence, this Bank has built up its service system of different layers for individual banking services: "Yikatong" ordinary card, "Yikatong" Gold card and Gold Sunflower card which have established the products and service systems for individual banking businesses ranging from mass customers, middle to the senior clients.

• Shangdong witnesses its bankcard transaction value over 100 million Yuan in 2004
According to the statistics of China Unionpay Jinan Branch, Shangdong Province (excluding Qindao) has a total of 46.32 million transactions with transaction values over RMB15.99 billion for ATM and POS terminals. Among ATM 33.17 million transactions, there is an increase of 60% against the previous year, and POS consumption value over RMB10 billion with an increase of 174.7% against the previous year.
From the report, China Unionpay Shandong Branch has expanded its network coverage ranging from cities of the registries and municipal levels to the county-level cities. With the positive efforts and cooperation with China Unionpay Jinan Branch, the relevant merchant banks and the related industrial sectors, Sino-Chem, China UniCom, China Mobile and China NetCom have signed the cooperative agreements with China Unionpay to install more POS terminals in the Province. This Province has a total of 6,003 merchants that joined China Unionpay with 11,912 POS terminals installed and 3,853 ATM machines connected to the China Unionpay. The fast growth of installed equipment and stable operation provide the handy services to the cardholders to consume and draw cashes. The Unionpay Card has become the handy payment tool for the citizens in the Province.

• The first Dragon card of China UniCom issued in Suzhou
On January 10, China UniCom Suzhou Branch and CBC Bank Suzhou Branch announced to issue the first telecom branded credit card - China UniCom Dragon card in Jiangsu province. This is the tailor-made credit card integrating payment and telecom services based on the membership club members for China UniCom between China Construction Bank and China UniCom. This effort has paved the further close cooperation between CBC bank and China UniCom ever since " Mobile Banking " business.

• Peony Hainan Airline credit card has a total of 25,000 cards issued in five months
It is reported that a total of 25,000 credit cards of ICBC (Industrial and Commercial Bank of China) Peony and Hainan Airline have been issued from August 9 to December 31 of 2004. The total five months have a successful issuance at 25,000 cards with a transaction value of RMB30 million. Among the 35 cities that have the card issuances in China, Beijing, Wuhan and Hai Kou have taken the leading positions with a 50% of a total card issuance volume in China.

• Lenovo, Visa and Bank of China jointly launching Olympic credit cards
Recently, Beijing Olympic Games Committee has signed a five-year partnership agreement with its top partners of Lenovo and Visa International. At the ceremony, Lenovo, Visa and Bank of China jointly launched "Olympic Credit Card of Bank of China, Lenovo and Visa" with the logo of Olympic Games Beijing 2008.
This credit card has the special free interest installment service of Lenovo product services at over 100 Lenovo Diamond Distributers' Shops in Beijing and Shanghai, apart from the three unique functions of global roaming, flexible money payback and tele-purchasing of the "Olympic Credit Card of Bank of China, Lenovo and Visa".

• Beijing achieving bankcard consumption value over RMB 70 billion in 2004
Beijing has achieved a fast growth of bankcard consumption trade over the past years with an annual increase over 100% of bankcard trade value. According to the statistics conducted by Beijing Municipal Bureau of Commerce on February 2, 2005, Beijing witnessed the bankcard consumption trade value over RMB 70 billion, accounting 20% of the overall social retailing volume in 2004. In order to improve the bankcard acceptance environment and prepare for Olympic Games 2008 in Beijing, Beijing Municipal Government has listed as one of the key governmental issues ever since 2003 for a second consecutive year.

• New IC Card Regulation completed to promote the financing standardization process
From the People's Bank of China, the 2.0 Edition of "The Regulation on China Financing IC Card" - (referred as IC Card Regulation) has been completed and approved for the appraisal by the China National Financing Standardization Technical Committee. With the revisions, this Regulation will be released and put for implementation as the industrial standard for the banking sector in China.
This IC Card Regulation of 2.0 Edition covers the contents of banking IC cards E-purse/electronic deposit books, debit/credit regulations, the standards of contactless bank IC cards and the personal applications for debit/credits. This regulation has taken some references of the international standards so as to meet the pressing situation of EMV Migration for the Chinese bankcard market. And this regulation has played the role of upgrading the security and conveniency of the bankcard usage as well as promoting the inter-change of the China's IC card applications with the international market and also the inter-changes between the related sectors in China.


Telecom News

• China UniCom and China Postal jointly launching "Boashitong" video-comm business
In Beijing, China UniCom and China Postal jointly held the signature ceremony of "Boashitong" video communication business agreement. This agreement aims to promote the rapid growing "Boashitong" broadbank video communication business based on the wide business operation networks of China Postal in China. Mr. Liu Andong, Director General of China Postal, Mr. Chang Xiaobin, President of China UniCom and Mr. Shang Bin, General Manager.
This business cooperation covers the jointly developed video fixed line phones, which will provide video public phone businesses at the operation offices nationwide, a handy face-to-face phone talk for the people to meet with friends at far distances. China Postal will provide the sales agent services for distributing "Boashitong" video phones at its operation offices. Also China Postal has been offered with the license to conduct the sales and distribution of this video communication businesses via its distribution channels and operation offices nationwide.

• The first RF IC chip for Smart Phones (Xiaolingtong) came into birth
From Shanghai Zhangjiang High-tech zoon, the first RF integrated IC transmitter and power enlarger chip group for PHS/PAS (usually called "Xiaolingtong - smart phones") terminals was developed by Dingxin Semi-conductor Co.,Ltd.
It is reported this chip group has good performance in the chip data and system test, and has better quality of phone calls as well as the sensitive quality at the industrial level. It is easy to upgrade the network coverage, and reduce the overall costs of the RF part and phone terminals. This company has provided engineering samples to the many partners to start for the trial test and certificates of developing this new phones. This is the first complete RF IC chip of higher level of difficulty conducted by the Chinese company. This has the significant breakthrough record in the wireless communication core technology and high-end chip design technology in China.

• The first Java Smart Card of China copy-right launched
Beijing Watchdata System Co., Ltd. has completed the development of its own copy-right Java card and submitted for the test by the relevant customers. This Java card developed by the Watchdata of its own copy-right ensured itself to be the leading-edge technology and becomes one of the global recognized trends of smart cards. The customers may download the APPLET developed by the third party to the card for implementation, which can satisfy the demand for flexible and handy function development by the customers.
Watchdata has been dedicated in developing its COS - the core software of smart cards with its own copy-right and it is the first vendor to sign the agreement with SUN Microsystem to legally develop Java COS system in China. The TimeXess/Java SIM card that complies with SUN Java Card standard and Global Platform 2.1 standard will support 2G and 3G applications. Its platform that has the irrelevancy, multi-functions and the down-loadable application will provide the telecom suppliers of value-added services with the powerful and flexible solution.

• Texas Instruments (TI) launching single chip solution for mobile phones
Recently, TI announced that it had joined the cooperation with Nokia that would integrate its single chip solution based on TI DRP technology in its future mobile phones. This cooperation ensures Nokia to provide more advanced hand-held terminals of lower cost, in particular the terminals of higher sales volume for entry market.
This single chip solution based on TI innovative DRP technology strengthens its advantage of integration so that it further upgrades its competing position for itself and its customers.

• BIRD launching the first mobile phone with finger-prints identity in China
BIRD Company has joined with China Academy of Science and Technology and the related organizations to develop smart mobile phone with finger-prints identity, which has passed the test by the relevant governmental authority in Beijing. It is reported that this mobile phone has been integrated with finger-prints modules developed by the Automation Research of China Academy of Science and Technology. This module has the function of finger-print identity authentication, and ensures that mobile phones be applied in the emerging e-commerce sectors like e-banking trade, wireless security trade and off-line Internet shopping by utilizing the conformity and stability of biometrics.


General News

• 2nd Asia Smart Label(RFID) Conference to be held in Beijing in Mid-April
Jointly organized by China Federation of Logistics and Purchasing and China RFID Standard Working Group, 2nd Asia Smart Label (RFID) Conference will be held in Beijing on April 19-21. The VIP attendants invited are from the official administrations ( such as Ministry of Information Industry, Ministry of Railway, General Custom Administration, and the officers from Guangzhou and Shanghai). And the international VIP speakers are also invited to make key notes from India, Korea, China Hong Kong and Taiwan Logistics Associations. The leading international vendors will make presentations at the Conference, they are from Philips Semi-conductor, ST, Symbol, TI etc.
The Organizers will keep half a day for organizing China RFID Users' Summit, by inviting the local end-users of retailers, pharmacy, auto manufactures and logistics, industrial gases cylinders as well as the delegates in charge of e-passport project to join in the interactive discussions on the applications of RFID in the different sectors and the briefings on the RFID status. The discussed issues and problems in the RFID applications from the different users will be collected and compiled into the sum-up report from the Summit. This sum-up report will be taken as the valuable reference for the promotion of RFID industry in China. The relevant officers will be invited to attend the Conference and brief on the present status on the RFID standard drafting work from the related authorities of Ministry of Information Industry and give Q and A at the event.

• Progressive and good sales of 7th Smart Cards + Smart Label (RFID) Expo, China and Users' Conference at the edge of closing its booths sales
From the Organizers' report, 7th Smart Cards + Smart Label (RFID), China and Users' Conference has made outstanding progresses in its booth sales and over 70 exhibitors have taken two third of the total 5,500 sqm. show space. Those who are interested in the exhibition or sponsoring the event may contact with AIT Events Co., Ltd. by the deadline at March 15. The show will be held at Beijing Exhibition Center Hall 9 and 11. Concurrently held are the 2nd Asia Smart Label (RFID) Conference and multi-tract Users' Conference. This event has been promoted at the leading websites of the international associations, such as (www.atmia.org; www.apsca.org; www.globalsmart.com; www.kepia.orgwww.chinawuliu.com.cnwww.chinasmartlabel.com;
www.cardtechnology.com; www.universal-packaging.com.

Ever since its first event initially organized in 1998, this Grand Event has become the premier and officially recognized industrial trade show taking the lead of presenting the global trend of the smart cards market and local card industry in China. The branded vendors at home and abroad are from Philips Semi-conductors, ST Micro-electronics, Muehlbauer, Austria Card, ASK, Bielomitk, Schober, Sagem, Verifone, Lipman, M-POS, Datang Micro-electronics, Huahong Micro-electronics, China CEC Huada Electronics, China CES Smart Cards, Shanghai Beiling, Beijing Tianshi, Shenzhen Promatic, Shanghai ShenBo etc.

• 7th The Users' Conference focusing on the industrial hot topics
From the Organizers of 7th Smart Cards + Smart Label(RFID),China and Users' Conference to be held between April 19 to 21. The Organizers will make a multi-tracts Users' Conference rich in contents and better than the previous year's conference both in size and more topics. There are more international involvements in conducting business communications at different levels with the Chinese users, they are from Global Platform, Asia IC Card Forum, Asia Pacific Smart Card Association, French Healthcare Card Association, French Bankcard Association and Smart Card Forum of India. The topics to be addressed will be on Asia IC card standard and application interoperability, global e-passport, biometrics technology and payment terminals and EMV migration etc. Those who are interested in the Users' Conference are welcome to register for attendance.

• RFID Solution in Tobacco Industry assisting the National Tobacco No. 1 Project
IThe present National Tobacco No. 1 Project has completed its first phase and will start the second phase work. There are some urgent issues to be solved as of today. Firstly, to synchronize the information management of the tobacco manufacturing is not an easy task but enormous and complicated. Apart from the data tracking of the tobaccos, there are more efforts in establishing the confirmation of data at a many more chains of operations, therefore the operation efficiency has been reduced; secondly, the traditional barcodes are easy to get rusted and dirty, and need to be precisely located requiring better operating environment. This cannot guarantee the promotion of the technology; the last difficulty is the lack of conformity in tobacco products delivery, case of tobacco delivery and the pallets. The State Administration of Tobaccos has grouped the related experts to address the solutions for problems facing this industry. After rounds of discussions, the Administration has decided to take the introduction of RFID technology for the implementation of No. 1 Project.
In view of the pressing operation dates of this Project, Shenzhen Weishen Electronics has been in coordinating the related departments and vendors to conduct the feasibility study for this Project for Hangzhou Liqun Tobacco Plant. This is the first and important trial implementation of RFID technology in the Tobacco industry in China, which will bring in the imputing impact for the industry.

• China is expected to introduce E-passports by year 2008
Recently, China, Japan and Philippines have completed the successful trial platform of the e-passport authentication in Hangzhou, Zhejiang Province. According to the responsible person of Wangxin Software Industrial Group of Zhejiang University that developed this Platform, China is possible to introduce its E-passport by the beginning of Beijing Olympic Game in 2008.
The trial test of the e-passport project by the three countries will be conducted on the same time at the three airports in Xiaoshan Airport of Hangzhou, Toyko Airport in Japan and Manila Airport of Philippines. This platform has been tested via cross-country authentication system, and the e-passport samples have been issued. The real passport model trial test for exit and entry has been done from Hanghzhou to Tokyo to Manila, including the trial test on cross-country digital signature and interoperability for the passport check-up.


Smart Cards News in General

• TaiAn, Shangdong Province successfully installed the IC card private key management system of public utilities
On January 25-26, the engineers of the IC Card Application Service Center, Ministry of Construction were invited by TaiAn Hongze Smart Card Co., Ltd. to go and install the IC card private key management system of public utilities. After the installation, the engineers provided to the TaiAn company technical and card issuance trainings, giving the guidance to the Company how to issue the cards for the City officials and how to make the re-loading private keys.
At present, over 300 public transport buses have been installed with the IC card systems with a initial card issuance at 50,000. TaiAn Hongze Smart Card Co., Ltd. is a joint ventured company between TaiAn Urban Construction Investment Co., Ltd. and the City Urban Public Transport Company.

• Tianjin successfully installed IC card private key management system of public utilities
At the invitation of Tianjin Municipal Construction Committee, the IC Card Application Service Center, Ministry of Construction went to conduct the installation and tests of IC Card Private Key Management System of Public Utilities in Tianjin on December 30, 2004. Tianjin is the last municipal city that accepted the System and it is the first city of installing V1.1 edition for this System in China. The City Construction Committee will start the trial installation at the light rails before going to introduce in the taxis, low-value consumption, water and gas suppliers.

• Chendu City Card used in the Movie theatres
On December 27, 2004, Chendu Garden Movie City introduced IC cards for ticketing. This is the second movie theatre to accept IC cards for the movie ticketing after Pacific Movie City started the use of City Card in August of 2004. Using this City Card for ticketing, the citizens will enjoy 20% discounts at the ticketing counters. For the further implementation, Chendu City Card Company plans to introduce this Card in the sectors of fast food restaurants, taxis, super markets and CNG Gas Stations; this Card will be shortly used in the petro-gas stations, property management in the resident areas and phone calls. The One Card with multi-applications for Easy Life will promote the overall development of City Card in Chendu City.

• EastCom Peace providing Henan Mobile public security information card
EastCom Peace started to provide the public security information card to Henan Mobile company. This is a specially designed SIM card for the Police of Henan Province, with the design in the card of special menu for police consisting of six modules, including the data of citizens, police traffic management, criminal inspection, police departments, systems functions and locations services. The police can access directly and instantly the data of the information of the local citizens, passports, drivers via security codes and menu. This has improved the security system and operation efficiency of the police.

• Wuhan Steel Plant successfully launching Access Control System at a cost of RMB8.70 million
Wuhan Steel Plant has invested RMB8.70 million (appx. USD1.10 million) to use its access control system for the overall close management. After the introduction of this Access Control system, all vehicles within the area of 23 km distance can not enter the plant without this RF plates. This plant decides to invest a total of RMB16 million to accomplish the target of supervised control for vehicles, people and logistics.

• Petro China will launch China Unionpay Card for Petro-gas in Beijing, Tianjin, Shanxi and Hebei
By January, 2005, the gas stations of Petro China for the high-ways of Jingshen between Beijing and Shanhaiguan Pass will introduce IC cards for gas consumption. By this Summer, the Beijing citizens can use the China Unionpay bankcards to pay the gas fillings on their way to BeiDai He Resorts.
According to the responsible person of North China Sales Branch of Gas Station of Petro China, the gas stations of this Company will introduce the China Unionpay bankcards for the gas filling at the gas stations between two municipal cities and provinces by May 1, 2005.


Vendors' News

• Gemplus accomplishing its first 3G SIM card fast OTA down-loading
Gemplus- the world's leading smart card solution vendor announced that it had completed with Hong Kong Heji Huangpu "3" Hong Kong Company its fast down-loading of Java SIM card applet for 3G infrastructure.
By using speedy and powerful communication channel based on 3G USIM and OTA technology, Gemplus successfully made a down-loading of one applet at a speed of 384kb into the 3G video mobile phone on the on-site network of the "3" Hong Kong Company. This proves the breakthrough of SMS carrier technology of OTA via 2G SIM Card. With this powerful speed of down-loading, the mobile operators will utilise 128kb and the USIM card with larger capacity to provide faster and more reliable smart card management solution, such as subscribers file management, applet downloading, dynamic memory management, business planning and post-personalization. The subscribers will get the services and contents they want and update or delete what they want. The mobile operators may also manage the Operators' Manu at a remote distance so as to have an easy configuration and recovery of the service and data.

• DaTang Micro-electroncs delevoping cooperation with ARM
ARM and Datang Micro-electronics made a joint announcement that Datang had got the license of ARM926EJTM processors. Via ARM contracted program, Datang will integrate the DSP and Jazelle technology of ARM926EJ for the research and development of telecom and multi-media application platform targeting the consumers electronics market.

• Philips chip technology used for contactless ticketing system
Koene Soccor Club announced to introduce Philips MIFARE DESFire chip technology for the multi-purpose contactless ticketing solution.
This solution provides the powerful combination with unprecedented fast speed for entry and powerful data, also meets the future application extension. This service function can be integrated into the existing infrastructure of the smart card system in the club. MIFARE DESFire is designed for the increasing demand for the 3DES fast contactless ticketing solution.

• Watchdata got the certificate of tax-control smart card from MII
Watchdata has officially released its TimeCOS for tax-control smart card that had passed the technical test by IC Card Quality Inspection Center of Ministry of Information Industry-MII on December 23, 2004. So far Watchdata has supplied three types of cards for tax-control, users' cards and tax administration purposes, which are in conformity with the national GB18240.2 standard, and have passed the related national inspections.
This tax-control smart card covers all applications of smart cards with security functions and adding the special order to the micro-processors for tax-control application. They are mainly applied for the tax-control cashiers.

• EastCom Peace supplied over 3 million cards for 2nd Generation of National ID Card Project
The 2nd Generation of National ID Card Project has started to roll out from the 2nd half of 2004 in China. As one of the officially appointed card suppliers in China, EastCom Peace has successfully supplied over 3 million new ID cards to the Ministry of Public Security that expressed its satisfaction over the quality, timely supply and the security.

• STAR NC product won the excellent product award
Fujian Start Company has won the Excellent Product Award for the China IT Users' Internet Computers 2004 for its NC - 6000 Internet Computer Series Products. This Award for STARNC - 6000 introduced core chip platform of Fangzhou, VIA and Dragon Chip. This product meets the pressing market demand for the multi-specifications and statistic data requirement. START Company has won the its leading position for its slim clients computers for its 11 consecutive years in the IT market in China.


Other Issues
    January 2005 News     
    
December 2004 News & 2004 Smart Card Review in China   
   • November 2004 News


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