Chinese High-tech Enterprises on the rise

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Last updated at: (Beijing Time) Sunday, October 13, 2002

Chinese High-tech Enterprises on the rise

The rapid growth of a great number of high-tech enterprises in China has made them the most dynamic and promising sector of the economy in recent years.

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The rapid growth of a great number of high-tech enterprises in China has made them the most dynamic and promising sector of the economy in recent years.

The State Development Planning Commission (SDPC) announced at the China High-tech Fair 2002 (CHTF) which opened in Shenzhen in south China Saturday, that the Chinese government has funded high-tech commercialization programs in over 1,000 Chinese firms over the past four to five years.

These firms specialize in such areas as telecommunications, electronics, communication, medicine, environmental protection, new materials, bio-technology and the development of west China. They are expected to increase their output by more than 200 billion yuan (24 billion US dollars) this year and boost their profits by 38 billion yuan (4.6 billion US dollars).

Wang Yang, vice-minister of the SDPC, said these programs helped push forward the growth of high-tech industry in China, adding impetus to and accelerating the strategic restructuring of the economy.

Official statistics show that the Chinese invested some 10 billion yuan (1.2 billion US dollars) of the seed fund in the programs, which attracted more than 130 billion yuan of nongovernmental investment. As a result, China's high-tech industry maintained an annual growth of 19 percent in 2001 despitethe downward slide of the global IT industry. In the first eight months of this year exports of high-tech products soared 43.2 percent year-on-year to an all-time high.

Despite disadvantages in scale and financial strength compared with multinational technology firms, Chinese high-tech enterprisesshowed a special edge in market competition. It took only a few years for Chinese manufacturers of mobile telephone equipment to expand their market share from zero to one-third of the China market.

On the first day of the CHTF 2002, 15 Chinese manufacturers of mobile telephones and high definition TVs signed sales contracts to a total value of 9.2 billion yuan (1.1 billion US dollars). Soyea Technology Co., Ltd from east China's Zhejiang province received a 120-million-yuan order from a Hong Kong client. This isthe first international order of the core component that the company developed for a new generation of projection TVs.

According to Chief Engineer Dai Yang, the new generation of projection TV will make debut in China market by the end of the year. And he said the lower cost of the entirely home-made projection TV will make it competitive against major foreign and Chinese brands. He said the company has set up a supply chain of Chinese companies for the new product, and predicted that sales ofthe key component of the projection TV will make up one-third of the company's annual revenue in 2-3 years.

Ma Dexiu, director of the High-tech Industry Department of the SDPC, said the rise of high-tech firms in China was attributed to the shift of global manufacturing bases from the West to the East and the upgrading of the Chinese economy.

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