3Com CEO Eric Benhamou Sees U.S.-China Trade Agreement as Benefiting Asia-Pacific Economies - Asian-Pacific Information Technology Summit - Company Operations

Edge: Work-Group Computing Report, Nov 22, 1999

"China's accession to the World Trade Organization will bring new incentives and growth stimulation for the entire Asia-Pacific region," 3Com Chairman and CEO Eric Benhamou said Friday at the Asian-Pacific Information Technology Summit in San Francisco. "This agreement reflects the economic and political necessity for the U.S. and China to normalize trade relations and enhance further economic collaboration."

On Monday, the U.S. and China reached an agreement that would open the economy of China to foreign competitors and make it a full partner in the world's trading system. As part of the agreement, China would join the Information Technology Agreement, pledging to bring tariffs on information technology products down to zero by 2005. China, the world's most populous nation, would also open competition in its telecommunications sector, both to services and foreign investment in China's telecommunications businesses.

"This agreement treats the Internet business with the same liberalized rules as it does the telecommunications business," said Benhamou, who in September traveled to Shanghai, Singapore and Beijing and met with China President Jiang Zemin and Prime Minister Zhu Rongji. "Foreigners would be able to own up to 50 percent of Chinese Internet ventures, giving China's Web entrepreneurs new sources of capital and allowing the development of a knowledge-based economy."

According to official figures, the current number of Chinese Internet users has reached over four million. Throughout the Asia-Pacific region, excluding Japan, there are over 17 million Internet users today, with more than 57 million users projected by 2003.

During his presentation, Benhamou outlined 3Com's focus on key growth opportunities for the Asia-Pacific region, including voice over IP, LAN telephony, wireless/mobile computing, as well as broadband access and home networking. He also stressed 3Com's commitment to the enterprise, small-to-medium enterprise, carrier and education markets in Asia-Pacific.

3Com registered the highest growth of any company in the Asia-Pacific access concentrator market during the first six months of calendar year 1999. Last month, 3Com announced that Korea Telecom selected the 3Com Total Control multiservice access platform and the 3Com CoreBuilder 9000 chassis for an infrastructure upgrade that will enable Korea Telecom to offer new converged services.

3Com and the Network Research Center of Tsinghua University in Beijing recently signed an MOU to establish a Convergence Application Development Center to develop and deploy new network-intensive applications such as digital libraries and distance learning. Tsinghua University is the top engineering university in China and serves as the management center of the Chinese Education and Research Network (CERNET). The Computer Centre of the University of Hong Kong and 3Com are also collaborating to build converged networks. The university currently maintains the largest ATM campus network in Hong Kong. In addition, 3Com recently introduced its NetPrep program in Asia to help prepare students for the demands of the knowledge-based global economy.

The Asia-Pacific Information Technology Summit is an annual meeting of Pacific Rim government ministers and business leaders. It is organized by the U.S. National Committee of the Pacific Economic Cooperation Council, the international advisory body to the inter-governmental forum on Asia-Pacific Economic Cooperation. FMI: www.3com.com.