The sales volume of China's software industry grew 23 percent year on year to 480 billion yuan (61 billion U.S. dollars) in 2006, according to the Ministry of Information Industry (MII).

The ministry also predicted China's market for software and information services would reach one trillion yuan by 2010, and the market share of domestic-made software and domestic-provided information services would exceed 65 percent. Currently foreign products still have a dominant share of the Chinese software market.

Chen Ying, vice director of the MII information products management department, said competition among basic software producers remained fierce in 2006. The development of basic software, including operational and data base management systems, would remain the focus of China's software industry.