SHANGHAI, June 13 -- China said it has developed a "new generation of fiber optics" in Shanghai as part of its strategy to advance the country's network communications, China Daily reported today. The product, called nondispersion single mode fiber optic, has passed tests conducted by the Ministry of Information Industry, Zhu Zhaozhang, general manager of ZhongTian Technologies Fiber Optics Co. Ltd., told the newspaper yesterday. "Local insiders said the new fiber optic is well-placed to compete with its overseas counterparts and has its own intellectual property rights," said the article. Zhu reportedly said the fiber was developed "to replace the large amount of imports." Zhu told China Daily that about 40 percent of fiber optics consumed in China last year were imported from the US, Japan and the Republic of Korea. "ZhongTian took a year and spent 166 million yuan (US$20 million) to develop the new fiber optic, which is now being produced in its factory based in Nantong, East China's Jiangsu Province," the China Daily reported. "It has a design capacity capable of producing 5 million kilometres of fiber optics annually, depending on the market." The company's chief engineer, Lu Guoliang, told China Daily the factory is expected to produce 1 million km of fiber optics this year. "China last year produced 25 million km of fiber optics, with Shanghai sharing 2 million km. It is expected to need 2.5 million km of optical cables by the year 2005, including 500,000 km of long-distance cables," he said. Zhu told the paper, "China, which is considered the world's biggest potential fiber optics market, is facing a price war that is confusing the market order." "Overseas prices are higher than domestic ones and can make up some losses at the home market," Zhu said, adding that the company is aiming for a 20 percent export of its products in the near future. ZhongTian said it will export some of its fiber optics to Pakistan, and that negotiations are being made with European consumers. For more information, visit: www1.chinadaily.com.cn