The Chinese software industry faces several general, technical, and governmental challenges. Generally, the industry is composed of many small domestic firms with limited ability to compete globally. Technically, few Chinese firms have achieved high levels of CMM certification. Government historically played a large state role but has reduced involvement since market reforms in 1992, allowing more foreign investment and accelerated growth, though China still lags India in software maturity.

1. Challenges behind the development of Chinese Software Industry Nadeem Jahangir, Kamal Ahmed, Wahab Aamir, Salah 27 August 2009 Institute of Science & Technology Development, Mehran University of Engineering & Technology, Jamshoro-Pakistan.