China's information industry can only develop if it takes measures to innovate and capitalize on its advantages, Vice-Minister of Information Industry Lou Qinjian said here Tuesday.

Lou told a forum on new technology and business development in the information and telecommunications industry that a gap remained between China and developed countries in terms of technology and business innovation.

China should strengthen its innovative capacities while learning advanced technology from the world, he said.

The Ministry of Information Industry (MII) would provide important projects with technological advantages and good market prospects with beneficial policies and support.

Chinese companies should join with higher education institutes and science research organizations to speed up the application of research results, he added.

Lou said China should learn from the "dot.com bubbles" to properly handle technology, business and demand. Rapid progress of wide-band business and cell phone message services set good examples of transforming market demand into real purchasing power.

Statistics showed by the end of this July, telephone users in China reached 480 million, half of which are mobile phone users.

Lou stressed the industry also faced severe challenges with the rapid growth of the telecommunications technology, and the more competitive market after China's entry into the World Trade Organization.

The forum, co-sponsored by the MII and the China Institute of Communications, invited 24 experts from government administrations and companies to speak on issues in the industry.

(Xinhua News Agency September 3, 2003)