Current situation and development trend of IC card application in China.
China's IC card industry and its application began in the early 1990s, with the development of the "gold card project" initiated by the Chinese government, which has a history of more than ten years. In this short decade, China's IC card industry and application from scratch, from small to large, quickly through the start-up stage, the development speed is amazing. Especially in recent years, China's annual issuance of more than 100 million, has become the world IC card application development the fastest country. IC CARDS are currently used in more than 10 government departments and industries in China.
I. application status of IC card market in China.
China become a year (IC card) are kept in a rapid growth trend, new application fields are growing every year, and application of mature industry is in a considerable growth rate
Data statistics: China information industry chamber of commerce smart card professional committee
The advantages of IC card are suitable for many application fields in China, and play an important role in many projects such as identity recognition and electronic payment. Telecommunications sector is the leader of the IC card application in our country, and launch the application of IC card in domestic has played a very important role, not only in high-end mobile phone, and in general public telephone, is visible to the shadow of the IC card (SIM card, UIM card, IC card can and local PIM card), it promoted the development of the industry sector. The telecommunication department has also developed the earliest standard specification for IC CARDS in China for telecom IC CARDS, which can be used for reference in other application fields from the aspects of technology selection and manufacturer qualification.
For years, the telecom of IC card hairpin quantity has been China's "big" IC card, become each year in the national IC card hairpin quantity occupies most share, this is related to China's continued growth, are also associated with the particularity of the telecom market. From early magnetic CARDS to IC CARDS, public phone CARDS have been updated very quickly. Today, public telephone IC card also forms a variety of forms, common IC card, common account card and account IC card. The development of China's mobile phone speed is very fast, in nearly a decade of at present our country has become the world's largest mobile phone market, annual growth rate in 450 million households, the rapid development of the mobile phone also led to the development of the mobile phone market, in recent years, mobile phone CARDS issued amount is also increased year by year,
China's social security card, another major CPU card after mobile phone CARDS, has played a positive role in the development of CPU CARDS in recent years. Currently, there are over 100 million people in China, and there is a huge market potential. However, the application market of social security in China is still very immature. Firstly, the information level of the social security field is far less than that of finance and telecom, and the level of employees is uneven. The second is that China's labor and social security system is a traditional and emerging field with a short history, and the internal integration needs some process. Money is also an important factor that troubles the social security department to start social security card. Social security card in the medium is more, at present, China's social security card types with paper card, magnetic card, barcode card, memory and CPU card, although the ministry of Labour and social security is asking the country to start the social security (personal) card for CPU card, but the real project according to the requirements of department by gradually formed the climate in recent years, this shows is that the market is still at the start stage, also indicates the trend of the future market.
By the end of 2005, China's implementation of urban public transport IC card charging system of the city has more than one hundred and twenty, field bus is a important field of application of non-contact IC card for contactless IC card (RFID) industry in China has played an important role in the development of. At present, there are more than 70 million bus IC CARDS issued in China.
CPU card, as a special single-chip computer, has shown more and more vitality. Currently, the main application industry is still in mobile phone field. In addition, China's major government programs are mainly CPU CARDS, such as social security card, tax control card, radio and television card, guide card, etc. The quickening pace of EMV migration in the field of global Banks, our country in the next few years, the pace of bank card CPU card to the bank transfer will also be a starter, it will be CPU card market of our country play a very important role in the development, provides a huge opportunity for the industry department.
A large number of IC CARDS issued each year, the memory card still occupies the main market share. In most places, where security requirements are not high, simple, low-priced memory CARDS tend to be the first choice, and the logical encryption CARDS are the first. Demand for logical encryption CARDS is rising every year. As the cost of the price drops, the minimum memory card will shrink.
Each application industry in China in IC CARDS issued, most is a non-contact IC card, the main application areas are: prepaid telephone, mobile phone, social security, bank, traffic, school, industrial and commercial tax, etc. The non-contact IC card is mainly used in urban public transportation, expressway toll, access control, canteen, property management, etc. Non-contact with its convenient transaction, fast speed, wide application field and rapid growth. Since China launched the second generation resident identity card (IC card) in 2005, non-contact IC card has ushered in a new peak of development.
2. Problems in China's IC card market.
Although China's IC card market shows rapid growth every year, China's IC card application market is not fully mature yet. Lack of professional personnel, not according to the market standard operation, is some application market phenomenon, is also caused the enterprise unfair competition root cause. A transparent, efficient, fair and rich sense of service, the director of the department is the premise and foundation of IC card project success, not in accordance with the law of market, the other is bound to affect the project and construction of the sustainable development of the future. Current some departments on the concept and understanding of IC card is not in place, or there are misunderstandings, reflected in informatization, the overall planning, business process and promote industry development, etc, to know, such as some places for IC card project's understanding of the difference is very big, there are local protectionism, some even just as a record of the IC card project construction, and ignoring the IC card project is a long-term information "for the convenience of engineering".
Compared with general information construction, the construction of IC card project has its particularity, IC card involves families, it is connected directly to the government and the citizens of information tools, especially about a project construction, card holders, involves many government departments, the coordination of become the top priority, which links are not allowed to appear problem, the construction of the system must also prepare for the future years of planning. Good for construction projects, the government need to work in many ways, and actively promote science knowledge to the citizen, cultivate professional talents, attach importance to the construction of information security, choose to have the strength of construction projects, realize data sharing and business collaboration between different departments, more need to effectively solve the project from all parties interests distribution, and utilization of resources.
Iii. Prospect of IC card application in the next five years.
After more than ten years of development, China's IC card market has entered the stage of adjustment. Although there are still some problems, the overall trend of development is already moving towards good situation. Looking forward to the next few years our IC card market condition, the foreground will be better. It will be embodied in the following aspects:

1. In mobile phone area: mobile phone card will still be one of the mainstream products of the market. In terms of shipments, there will be at least 2 billion in the next five years, and the number of CARDS sent to end-users will grow. Especially with the advent of the 3G era, there will be a lot of growth.

2. In the second generation of resident identity card replacement areas: according to the unified deployment of the ministry of public security, by the end of 2008, the basic replacement will be completed, that is, the replacement of 900 million copies. In addition to public security applications, the second generation of resident identity CARDS covers hundreds of applications, such as Banks, hotels, stocks, postal services, airports, social security, employment and so on.

3. In banking and financial services industry: although the EMV migration is insufficient, its prospects are quite broad. At present, China's bank card issuing more than 1, 900 million, at the same time, along with our country national strength enhanced, the continuous improvement of people's living standard, traveling abroad is swelling, although the risk transfer of the EMV migration is more and more outstanding, but up to the standard of EMV2000 hairpin quantity still within five years there will be a breakthrough in growth, by 2010 the number will to millions.

4. On education system student id card and campus one-card: currently, the ministry of education and local governments at all levels are discussing the unified standard of education system student id CARDS and campus one-card. If the unified standard is implemented, the development of education will be further promoted, and its issuance will be in the hundreds of millions.

5. In the aspect of urban traffic CARDS: urban traffic CARDS will be developed in the direction of regional one-card, such as extending from the Yangtze river delta and the pearl river delta to the surrounding areas.

6, in terms of labor and social security card: with the constant improvement of the social security system in our country, combined with the labor and social security card for industry standards, the hairpin quantity will have obvious growth in five years. If Shanghai's social security card has been developed to the township and floating population.

7, in government agencies and corporate identity and access card: this card is to solve at the same time of sharing information and the information infrastructure, an important measure to guarantee system and information security. It is based on PKI technology, to solve the authenticity, integrity and non-repudiation requirements of information, to ensure the system and information security, so that users of different identities can share information and get the required information. The demand for this card will increase day by day. Of course, the form of this card can be the form of a smart card or a USB KEY.

8, IC to develop in the field of radio frequency identification (RFID) : national office since 2004, the seventh gold card IC card application work throughout the country after the meeting, has made the RFID technology and electronic label application officially listed in national gold card project priorities, and to organize pilot application. After more than a year of research and discussion, by the relevant industry and local declare, in conditional departments and local launched the pilot work, actively and steadily promoting the construction of the RFID application demonstration project. For industrial production process and safe production management, promote productivity development; We will serve agriculture, rural areas and farmers and promote the industrialization of agriculture (agricultural products). Anti-counterfeiting and dynamic management of important items; Supply chain and modern logistics management; Digital tourism industry and modern service industry.

Throughout the future IC card application market in China, the application field of emerge in endlessly, represented by identification of identity CARDS, mobile phone (2 g, 3 g), digital TV (STB) and digital radio card, PBOC 2.0 card or a card based on PBOC 2.0 multi-purpose charging CARDS (city pass, gas card, gas card, card, etc.), the overall market will produce the sales of more than 3 billion copies. This is not only the icing on the cake for the application, but also a historic opportunity for the industry sector.

China's IC card market is facing another peak period of development.