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China Backs Off WAPI Proposal: Page 2 of 3

U.S. industry executives are expected to travel to China next month to begin talks aimed at integrating WAPI into the international standards process. The talks will be sponsored by the Standardization Administration of China (SAC) and the IEEE.

Prior to today's decision, companies like Intel Corp. and Broadcom Corp. had said they would not develop WAPI-compliant gear.

In an interview, ITI Dawson added, "WAPI, as it exists now, will not be implemented." The SAC will work international standards bodies, likely the IEEE, to develop a new WAPI standard, he said, and they will no longer require outside companies to work with Chinese companies to acquire IP, thereby conforming to WTO regulations on national treatment.

The same approach will apply to 3G as China opens its market to competition so that W-CDMA, TD-SCDMA or other specs can compete on equal standing without government mandates.

"China has recognized its obligations to the WTO and working at joining the world community," said Dawson.