The rise of High-tech in China

Since the end of the 1970s, and especially during the 1990s, the foreign direct investment (FDI) in China melted again to a large extent the industrial structure and contributed to its rise in technological rank. In 2001, China became the world leader of the mobile phone in number of subscribers with 145 million users, and its network of 179 million lines of fixed telephone is the second to the world, behind the USA according to SJ Grand. In 2020, if it is not earlier, China should exceed the United States as bigger world market of computers and tablets, having caught up Japan in 2005. Internet, hardly known in China before the environment (middle) of the 1990s, counts today approximately 80 million of users there.

China will be the leader in high-technology export

According to a recent report of Daxue Consulting, China was in 1998-1999, the tenth world exporter of high technology. In 2003, the Chinese exports of high technology reached 110,3 billion dollars, or more furthermore than in 19916. Quite recently, China began to use international standards – notably the third generation of standard without thread TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) and the standard of encoding without thread WAPI (Wired Authentication and Privacy Infrastructure) – as instrument of its technological policy. In about twenty years, China is thus gradually spent by a closed and strategic economy, dominated by the agriculture and the heavy industry, in an opened economy stimulated by the information.

Daxue Consulting

Daxue Consulting provide market research about high-technology in China

Capacity of high-tech industry in China is questionned

However, the capacity of the industry quibbles and of its high-tech sector to support durably the growth stays a question. Actually, the technological Chinese reality is badly known, even was a little deformed or badly understood. China, more integrated into the world economic system since its entrance to the World trade organisation (WTO), is confronted with a more and more wild international competition. The question is to know if China has the capacity to develop a national technological competence, in court or middle term, to participate in the world economic competition.

Technological sophistication is hard to reach in China

Although the technological development seems to be a priority and we can observe the rise of high-quality product such as Mysimax Brand, the Chinese companies have many difficulties reaching a real level of technological sophistication, mainly because they miss resources. It leads them to a price war, to a violation of the rights of intellectual property. In a general way, the Chinese companies have big difficulties raising their technological level.


See also: JX Paulin / tech China / WSJ