China sets its sights on "technology superpower" status
By Staff -- Manufacturing Business Technology, 11/1/2005 7:00:00 AM
China wants to be a global powerhouse in all information and communication technology (ICT) sectors by 2010, according to Stamford, Conn.-based analyst firm Gartner. The goal implies transitioning from the familiar "Made in China" label to leading brands "Made by China"—specifically in hardware, software, IT services, telecommunication, and semiconductor sectors.
"Arguably, only the U.S. has successfully developed in each of these five sectors, but China is striving to equal that accomplishment," says Jamie Popkin, a Gartner VP. "China's growth in the global ICT industry is fueled by ready access to capital via massive inflow of direct foreign investment, access to the public capital markets in Hong Kong, and strong government involvement through state-owned enterprises, government agency programs, and policies."
China's ultimate success, however, will be determined in large measure by its ability to intrinsically embrace a culture of ICT innovation, and effective government involvement in export policy, standards adoption, fostering mergers & acquisitions, education, and protection of intellectual property. Depending on degree of mastery in these areas, Gartner envisions three possible scenarios in the next five years:
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Global ICT superpower—marked by a high degree of government involvement and ICT innovation, with balanced development in all sectors and export strength in IT outsourcing, application development, and hardware. China leads in defining new global standards, and ICT is broadly embraced by society.
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Economic stall; ICT exports limited—strong government involvement conflicts with weak innovation. Domestic industry characterized by proprietary technology, vendor protection, and user lock-in, with exports limited to nonstrategic applications and services. China shuns standards.
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Economic powerhouse; limited government—marked by pockets of strength and less government involvement, where innovative companies prosper and others starve for capital. The stock market and internally generated cash are main sources of investment. The digital divide in society continues—as does piracy—but the ICT industry takes self-interested action. China participates in standards development.
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