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Tax Information Less Taxing to Collect

30/03/2013 17:45:32


China’s National Development and Reform Commission (NDRC) has administrative and planning control for the Chinese economy. It forms economic policy, maintains economic development balance, and guides China’s economic system.

As part of their mission, NDRC built a tax information system covering 27 tax categories including, Value-Added Tax (VAT), business tax, and corporate and personal income tax. Plans called for a four-level, Wide Area Network (WAN) to cover tax bureaus at the national, provincial, and local levels. 


Two previous networks no longer satisfied requirements, so the NDRC built a third network to improve several shortcomings.

Insufficient bandwidth and limited coverage

The bandwidth for two links between provincial and municipal tax bureaus were 10 Mbit/s and 2 Mbit/s respectively. Meanwhile, bandwidths for links between municipal and county bureaus were 2 Mbit/s each. This made it impossible separate business tax services from administrative services. Plus, information and service sharing with non-NDRC departments, such as finance, industry and commerce, and civil affairs was difficult.

Poor system management and reliability

System management became more complex with the expansion of tax management services like common invoice management, tax payment evaluation, and remote business tax handling. The NDRC needed to optimize the management system with new IT technologies to support taxpayer interaction and provide better network reliability.


Huawei’s data and transmission network covers the core, aggregation, and access layers and has several unique features.

Huawei products for network-wide coverage

Huawei integrated the old and new IP networks with NE80E Core Routers on the provincial bureaus’ central nodes and NE40E-X3s on the 14 municipal bureaus’ nodes. All of them connected to routers on the original administrative network through Gigabit Ethernet (GE) or Fast Ethernet (FE) links.

Active NE20 routers were deployed on each node of the 89 county and 45 municipal branch bureaus. NE series routers share the same hardware, software, and network management platforms to ensure network architecture and functionality consistency.

Clear network and routing hierarchy for increased bandwidth

The network uses a hierarchical design to allow service separation and provide clear work division. The network core deals with IP/MPLS fast switching and the municipal bureaus handle service convergence and Quality of Service (QoS). This hierarchical design focuses routing and frees the core from edge link flapping.

Huawei products significantly improved bandwidth, allowing two 34 Mbit/s links to better balance the load between provincial and municipal bureaus while two 4 Mbit/s links handled connections between municipal and county bureaus.


Huawei’s solution provides several key benefits:

Optimized networks

Huawei made the networks more information-enabled in terms of: 

  • Information security
  • Network reliability
  • Improved communication with other departments
  • Easier platform setup for the taxation management information system

Increased link bandwidth and easier network expansion

Two 34 Mbit/s links between provincial and municipal bureaus and two 4 Mbit/s links between municipal and county bureaus allows the network to function in load-balancing mode. The links serve as backups for each other.

Better information linkage

The networks now seamlessly connect to other eGovernment networks to exchange data and share information and services with other government departments.

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