The first national "smart device security alliance" has been founded in Shanghai to improve Internet information security.

The China Smart Device Alliance aims to ensure the security of e-commerce, personal privacy protection, and mobile payment.

The alliance covers the whole industry chain from chip designers, handset vendors, operating system developers, and dot-com giants.

China's smart device security market is seen to be worth over 16 billion US dollars and growth is expected to be rapid this year and next year.

In 2014, sales of smartphones in China totaled 389 million, accounting for 30 percent of the global market.

Domestic phone makers snared over 78 percent of the Chinese market last year.