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Starting next year, China is expected to replace the existing plastic national identification (ID) cards with new chip-based electronic identity cards, according to sources.

The core of the new ID cards is an embedded microchip storing an individual's personal information, which can be read electronically and checked against databases kept by China's security authorities.

The government is citing security concerns as the prime motivation for the roll-out - previous plastic ID cards were thought too easy to fake.

The amount of information to be stored on the new personal-identification cards, however, is dwarfed by the data on social-security cards coming into use in many of China's big cities.

These conveniently link information for all the government services that a person receives, including medical care, welfare benefits and employment assistance.

The Ministry of Labour and Social Security plays down privacy concerns, saying encryption systems on the cards will prevent unwanted crossover, such as an employer getting information about an employee's medical history.

The ministry will control the databases being built to store the detailed records. "We can use this information to better research macro-level policies, such as changes in benefits or the retirement age," said Wang Dongyan, a ministry official.

He said the ministry plans eventually to link the social-security databases to those of other ministries, such as security and education.

Some media reports predicted that trial run for the smart ID card would begin next year, and most Chinese citizens will get the new cards by 2005.

Some experts said they are optimistic with the roll-out, citing that information leaks could be curbed through drafting or revising relevant regulations.

Song Gongde, a legal expert, said he was encouraged by a provision in China's ID law, passed in June, that strictly limits the kinds of data that can be stored on the ID card, including name, birth date and the 18-digit citizen ID number.

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