Chinese firm seeks Korea’s tech expertise

The Chinese government is introducing an electronic authorization system for all products distributed within the country as a way to counter its international notoriety as a hub for counterfeit goods, and it wants Korea’s advice. China Credit, an information technology firm, said yesterday that it has developed a barcode system to tag all products distributed in China to ensure quality. The tags will contain information on the product, which enables consumers to confirm its authenticity through the telephone or the Internet. “Damages due to counterfeit items in China amount to $130 billion annually. This barcode system is efficient and will make it easier to track down the source of counterfeit items, which is destroying China’s image,” said Liu Yan, head of China Credit. China Credit was established earlier this year as a joint operation between CITIC 21 Century and China Telecom. China Credit added that Chinese authorities have already approved the system and that test services have begun in major Chinese firms; 33,000 Chinese companies will be required to use the system beginning in October. China will also apply the system to imports, so Korean companies that ship goods to China will have to tag their products as well. Mr. Yan said the company went to Seoul to consult with Korean companies on related technology and meet with members of the Information Ministry. “If we can develop the technology and the price is right, we would like to upgrade the system from barcodes to radio frequency identification chips,” he said. Radio frequency identification, or RFID chips, have similar functions as barcodes, but can contain up to 6,000 times more information. Koh Hoon, China Credit’s spokesperson for Korea, said that it hopes to collaborate with Korean companies on developing an RFID-based system and the production of RFID tags and readers. by Wohn Dong-hee