China's IT output to lead the world by year 2010

http://news.xinhuanet.com ^ | 12-07-04

[riri]

BEIJING, Dec. 7 (Xinhuanet) -- China's information technology industry output will triple in 2010 to become the world's largest, a senior official from the National Development and Reform Committee said Friday at a conference in Beijing.

Besides strong output, the country is also emerging as a leader in technology, thanks to the growth of domestic companies, said Xu Qing, vice director of the committee's high-tech division.

This year, the IT industry output is expected to hit 2.4 trillion yuan (US$289.16 billion) to become the world's third-largest following the United States and Japan, Xu said.

Xu's confidence is based on some new bright spots in the industry, including digital television, integrated circuit manufacturing and third-generation telecommunication application.

"Some domestic companies have been developing the related technologies on their own, such as Legend Group Ltd on digital TV and ZTE Corp on 3G research," Xu said.

Chinese companies now often play a manufacturing role in the IT industry chain without a core technology patent, which brings them less profit, compared with their foreign counterparts.

To buck this trend, the Ministry of Information Industry will spend about US$200 million annually to help domestic IT companies develop their own technologies.

The ministry also plans to launch a software developing platform that domestic companies can share their technology at a low cost.

In addition, the Chinese government plans to establish more integrated circuit manufacturing zones.

Domestic IC companies setting up in the zones will enjoy preferential tax policies.

The output of existing and future chipmakers in the zones is predicted to reach US$15 billion yearly.

In the first 10 months, China's IT industry output reached 1.8 trillion yuan and the IT industry's output contributed 30 percent to the country's economy.

Currently, China's IT output contributes the most to the economy among 39 domestic industries, according to Yao Jingyuan, chief economist of the National Bureau of Statistics.

China's GDP will jump more than 8.5 percent to 11 trillion yuan this year, Yao said.

"China's IT industry will have a bright future because the world's economy has began to rebound, as well as fast growth of the Chinese economy," he said.

The two-day 2003 Annual Economic Conference of China IT Industry attracted more than 400 participants.

[riri]

ping

[templar]

Xu's confidence is based on some new bright spots in the industry, including digital television, integrated circuit manufacturing and third-generation telecommunication application. "Some domestic companies have been developing the related technologies on their own, such as Legend Group Ltd on digital TV and ZTE Corp on 3G research," Xu said.

Not to worry. These are just 'buggy whip' industries that we don't want or need in the United States. Besides, China is our friend and trading partner, not an enemy competitor.

[boomop1]

Two IT's in every garage and a chicken in every pot.

[Az Joe]

Sarcasm?

[AmericaUnited]

Yup, just like Japan was going to take over the world 15-20 years ago...

NOT!

[templar]

Sarcasm?

Well, some people would consider it that. Unfortunately, a lot of others would not, they'd just agree.

Lets see how many show up on each side? (and yeah, I expect flames to burst from my screen).

[LibertyAndJusticeForAll]

"Not to worry"

Exactly so. Afterall, China is correct that we are just a Paper Tiger. And we should all just continue being lulled to sleep by the Great Wall Mart and all the rest of corporate America making money hand over fist while China grows stronger and stronger every month. No need to worry, that we are becoming more and more dependent upon China, even for vital defense manufacturing.
Not to worry, just go gently back to sleep...

[xrp]

Freedom, Liberty and private property ownership rights are the 3 main factors in creating a highly productive, highly innovative work force. Elimate those three and you eliminate the latter 2. It'll be interesting to see which way both the USA and the PRC go.

[Bush2000]

Yup, just like Japan was going to take over the world 15-20 years ago... NOT!

I'm sure that people that made televisions and radios here in the United States once thought that their jobs were secure, too. IT guys will get a chance to put their jobs on the line and see whether this comes to pass ...

And what better way to help the ChiComs than to hand over our intellectual property in the form of open source...

[Reeses]

"Bill Gates has opened his Microsoft Windows kimono and revealed all to the Chinese government."

www.theinquirer.net

[lelio]

Yup, just like Japan was going to take over the world 15-20 years ago...

Confuscious say: man with 15 year outlook no competition for 100+ year outlook.

[Bush2000]

Here's the difference: China owns everything (ie. open source code) that you give to it. It doesn't own MS source code. It pays for it.

[AmericaUnited]

Oh, is that why Japan has been in a 14 year depression?

[lelio]

Oh, is that why Japan has been in a 14 year depression?

Depression? You mean like people living in shacks in the park, like our Great Depression? Or are you just referring to their stock market?

[oceanview]

one big reason Japan is in that depression because china is taking their key manufacturing industries like consumer electronics (and soon, autos). who is going to knock off china? who can make it cheaper then china? africa maybe, you think they have a shot at organizing a pool of labor for 21st century manufacturing?

china is the finish line in the race to the bottom.

[FITZ]

I guess we don't have to worry about Japan --- they weren't Communists --- it looks like the Communist country will win.

[RogueIsland]

IT guys will get a chance to put their jobs on the line

IT guys in India will get that chance, since by then they'll have the bulk of U.S. IT work.

[RockyMtnMan]

There is a significant difference between a line worker in a factory and a software developer. Software controls every facet of our economy from trading systems to the little voice in your kids interactive toy.

This oversupply of cheap laborers will drive intelligent designers out of the field and raise the standard of living for third world countries. I'm not sure which is worse a wealthy communist China or a tech backwater USA.

There will always be room for high-tech jobs, but unless we provide a career path that can sustain a family until the laborer can reach that point those jobs will disappear.