IT Market to See 20% Growth: Official

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Last updated at: (Beijing Time) Thursday, February 28, 2002

IT Market to See 20% Growth: Official

Strong domestic demand and an active telecommunications market will continue to boost China's information market this year, according to senior government officials and industrial analysts.
The output of the information sector is expected to amount to 1.5 trillion yuan (US$180 billion) this year representing a 20 percent increase.

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WTO Accession Brings New Challenges

"2002 is the first year after China's accession to the World Trade Organization and we will face lots of new challenges, but we will do well," said Lou Qinjian, vice-minister of the information industry.

He predicted on Wednesday at the China IT Market Forum 2002 -- organized by China Center for Information Industry Development (CCID) and its market research arm CCID Consulting Co Ltd -- that the output of the information sector will amount to 1.5 trillion yuan (US$180 billion) this year representing a 20 percent increase.

Last year, the sector contributed 1.35 trillion yuan of industrial output to the national economy with a 26.8 per cent year-on-year growth rate.

Role of IT Industry

Lou said the country's steady economic growth, pro-active fiscal policies, and efforts to elevate the incomes of rural people will create robust domestic demand and a growing consumer population for the information industry.

Gou Zhongwen, vice-president of CCID and chairman CCID Consulting Co Ltd, also said greater adoption of IT by industry will guarantee steady growth following China's WTO entry and the start of the construction for the 2008 Beijing Olympic Games.

Development of IT Industry Keeps on: CCID

CCID Consulting, a major IT market research firm in China, also released 67 reports on virtually every area of the trends in the IT sector including computers, networks and telecommunications.

China to Become New Center of Telecommunications

Deng Zhicheng, a senior analyst with CCID Consulting, predicted that fixed assets investments in the sector will rise about 8 per cent to 300 billion yuan (US$36 billion) following the break-up of China Telecom into a number of carriers.

The market for telecom equipment is estimated to be 189 billion yuan (US$22.8 billion), 11 per cent higher than the previous year. The subscribers of mobile phones are expected to reach a new record high of 200 million.

"We believe China will become a new center of telecommunications with a steady increase rate," Deng said.

Sales of Related Products To Grow

Zhang Hongfen, another researcher with CCID Consulting, predicted sales of computer-related products will grow by 20.4 per cent to 300 billion yuan (US$36.4 billion) from last year's 250 billion yuan (US$30 billion).

Sales of hardware will reach 215 billion yuan (US$26 billion) with a 18.5 per cent rise, while those for software will grow by one-fourth to 35.7 billion yuan (US$4.3 billion).

The market for computer-related products is expected to retain an average annual growth rate of 20 per cent to 2006 and sales will amount to 700 billion yuan (US$84.6 billion) in 2006.

Premier Zhu Calls for More Efforts to Boost IT Industry

While presiding over the recently convened first meeting of the national leading group on informatization, Chinese Premier Zhu Rongji called for greater efforts and better coordination to push forward China's information industry in a market-oriented way and prevent redundant building of infrastructure.

China Among Top 10 Information Industry Powers

China has now edged into the world's top 10 information industry powers thanks to 10 years of rapid expansion. The manufacture of information products is now worth one trillion yuan in China, accounting for 19 percent of the GDP. Information has become the biggest pillar industry for not only coastal Guangdong Province but also for inland Shaanxi Province.

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