The information technology (IT) industry has become a top priority for the Chinese government. In fact, the government formed the Ministry of Information Industry in 1998, further illustrating its commitment to drive the digital economy.

There's no question that China is embracing technology. If the China PC market grows at 29 percent a year through 2002, as IDC predicts, it will pull even with Japan as the No. 2 PC market in the world behind the United States.

Part of the demand for PCs comes from a skyrocketing Internet market. The number of Chinese connected to the Net increased 213 percent from '97 to ‘98 to more than two million Net surfers. What's more, Nicholas Negroponte from MIT Media Lab estimated the number of Chinese accessing the Net at 10 million by the end of 1999. Even the government is getting in on the act, bringing many of its services and information online.

Unburdened by much legacy systems, businesses in China are also buying and deploying IT solutions at an increasing rate.

Plus, the government is gradually lifting its monopoly on the telecom industry. China Telecom has begun to be joined by other domestic telecom services providers such as Unicom and Jitong. Foreign services providers are also gradually being allowed to enter the market. Experimental operation of IP telephony is being carried out in around 40 cities in China this year.

In spite of the economic turmoil in the region, China's IT and telecom markets continue to produce a myriad of opportunities for companies which sell IT and telecom products/services.

Chinese Translation

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