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China Is Using Its Mass Markets To Create Standards, Report Says

China is utilizing its rapid growth and massive captive markets as a means to influence next generation standards across a broad range of technologies, according to a consulting company's report.

China's policy of using standards for its own economic advantage is already evident, said Charles Yen, Deloitte Touche Tohmatsu's national leader for China. For example, China is drafting a policy that could lead to Linux becoming compulsory in the country and has established a RFID working group that could likewise recommend compulsory use of a unique Chinese tag technology, he said.

"China is able to use the lure of its massive markets and spectacular growth as leverage in the standards war," Yen said in a statement. "Global technology and telecommunications companies need to review China's standards initiatives and collaborate, where appropriate, with Chinese companies in standards development."

Additional areas where Chinese interests are having some success in setting standards include the EVD (enhanced versatile disc) standard, which has improved sound and picture quality over DVDs, and a Chinese successor to MPEG-H.264, which Chinese interests claim represents an improvement over that older technology. China's new compression and video standard is called AVS and it could become a global replacement for earlier MPEG standards, the report stated.

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