Chinese electronics & IT industry will likely post revenue of US$ 0.6 Trillion by the end of 2006, while it was US$ 0.5 Trillion in 2005, as per MII (Ministry of Information Industry).
Chinese electronics production is estimated to cross US$300 Billion by the end of 2006, surpassing US to become the largest manufacturer in the world. Sales of software sector is expected to reach around US$ 64 Billion by the end of this year, Lou Qinjian - MII's vice minister - said. He further added that the electronics & IT industry would likely see a sales growth of 22% in 2007.
A continuous improvement in research, development & manufacturing of network devices & products of optical & mobile communications has been seen by China over the past few years, as per the Ministry.
The industry has sold products to above 100 districts and countries, providing communication equipments for more than 400 telecom operators across the world.
There are many reasons behind this good growth in the sales of electronics. The unexpectedly good performance of the trade was mainly due to the unexpected global economic recovery, enhanced government support for exports, and contribution from more foreign invested firms & private firms.
And, in its 11th 5-Year Program, which was adopted in year 2005, China greatly emphasized on the development of a consumer demand driven economy for sustaining economic growth & addressing global imbalances that has resulted in increased sales.
However, electronic equipments' production in China may slow in next few years as Chinese electronics industry's vast size is making it more difficult to attain the type of high margins of growth that were attainable previously.
"As information and electronic products are gaining market share across the world, the sector finds itself involved in the trade disputes of the country, facing challenges such as anti-dumping, high patent fees, technology barriers etc", said an analyst at RNCOS.
Related Market Research Reports:
Chinese Consumer Electronics Market till 2011
Consumer Electronics Market in Brazil (2007-2011)
China Telecom Analysis (2008-2012)
