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Morgan: China's IT Industry Optimistic
Irrespective of a downtrend of the universal IT industry and frustration in IT stocks, China's IT industry has a broad and optimistic prospect, said Stephen Roach, director, general manager and universal chief economist of US Morgan Stanley Dean Witter & Co., the world largest investing bank, during an interview Wednesday.
Thanks to a huge population and undeveloped communication industry, China still has a broader prospect in its IT industry than others. Development of communication in China's urban, rural and outlying regions will bring about a long-term and stable development of its IT industry. In the coming several years, China's IT industry will see a substantial and exciting evolution.
Roach added that China and other countries should draw a lesson from the Nasdaq bubbles of the US. They should have clarified commercial patterns instead of simple concepts when promoting IT industry.
Roach believed that a slackening growth of the worldwide IT industry will unavoidably impact the exports of China's IT products. Since IT products hold a fairly important status in China's export trading, he said, its export growth in 2001 will be slowed down definitely. To overcome this problem China can adopt further policies to stimulate internal demand and make up the decline of external demand by promoting internal requirement. Thereupon, China's GDP growth in 2001 still can reach 7 percent.
Professor Roach thought that although China will be confronted with a difficult external environment, its resistance is still remarkable which will release the country from a serious beat. He is optimistic about the further of China's economic development.
By PD Online staff member Du Minghua
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