- China is quickly moving to take the dominant position
in the use of radio-frequency identification technology, and could soon
become the majority consumer. The country is preparing to launch several
major initiatives supported by RFID, Rocky Shi, a consultant for RFID applications
in China, told attendees at RFID World in Denver during the keynote roundtable
on Wednesday. Others participating in the general session included Doug
Ebert, VP of strategic development at McKesson; Pat Rary, manager of baggage
strategy at Delta Air Lines; and Scott Stuart, president and CEO of the
National Lifestock Producers Association.
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- Contributing to this technology explosion in China is
Wal-Mart Stores Inc. From 2005 to 2007, the retailer's suppliers are estimated
to use 5 billion tags annually on cases and pallets, Shi told InformationWeek.
Analysts say between 60% and 70% of Wal-Mart's non-food items are shipped
from Asia.
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- China also has initiated several national projects. For
example, Chinese citizens will receive an identification card, meaning
more than 1 billion RFID-enabled cards. Shi says China wants to eventually
combine all applications, such as banking, driver's license, and credit,
into one card.
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- In the health-care industry, China will launch a program
to monitor and track bags of blood to prevent and monitor against AIDS
and hepatitis contamination. China's population consumes up to 47 million
bags of blood annually, and protecting it at the source has become a major
project. And as the country continues to develop innovative use for the
technology, it is taking into consideration possible compatibility issues
with standards being developed in the United States and Europe.
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- Representatives from the Chinese government; Chinese
National Academy of Standards, a group of professors and researchers; and
EPCglobal, an arm of UCC.EAN charged with establishing electronic-product-code
standards, will meet next week to discuss compatibility issues. "Without
the standard you cannot share information, and the most important part
of the information is the identity or the content," Shi told InformationWeek.
"RFID is not a technology or product. It is a revolution. Companies
need a vision and an enterprise strategy, and it will change the way industries
conduct business by introducing new business models."
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- Most of the RFID chip technology still comes from U.S.-based
companies. But this will change. As applications becoming accepted and
volumes rise, U.S. companies will no longer have the capability to meet
demand and new Chinese companies will emerge, Shi says. "Within the
next three years, there will be a storm across industries in China,"
he says. "The driving force will come from both the Chinese government
and business." China is expected to hold its first RFID conference
in Beijing this September.
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- Copyright © 2004 CMP Media LLC http://www.informationweek.com/story/showArticle.jhtml?articleID=18902710
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