China’s IT industry growing faster
Filed Under: Business | Posted: 05/01/2007 at 3:30PM
Comments | Region: China
China’s information and communications technology is growing faster than expected, a World Bank report said in a dispatch today.
According to the Bank, China has the largest telecommunications market and its IT industry has been growing two to three times faster than its GDP over the past 10 years.
However, if China wants to make full use of its potentials in ICT, it needs to put in place a good foundation for equitable and sustainable economic growth, saysWorld Bank vice president for East Asia and Pacific region Jim Adams.
It in its report, the Bank added that regulatory reforms in telecommunications, open access to government information and data protection and privacy, are urgently needed in order to reap the full benefits of the ICT industry to its advantage.
The domestic ICT industry in China needs more innovation so that it moves up the value chain and beyond production of low-end products and applications, the report noted.
At present, China’s software exports only account 1-2 percent of its total IT industry exports. Hoswever, it was claimed that China’s IT industry is strong while its software development needs to be developed further. This is because only 16 percent of the teachers in China have proper training in ICT, resulting in the shortage of ICT skilled workers, it added.
In view of these developments, the World Bank is encouraging China to delve into expanding its online application process in order to make government functions more service-oriented, efficient and transparent. The sector that is targeted to benefit from this online information service is China’s rural areas.
"Fostering e-business can boost productivity, increase technological innovation and enhance international competitiveness of Chinese enterprises," the report said.
For example, out of the 838 firms that participated in the government’s e-commerce program, 58 percent increased their number of supplier contacts while 70 percent increased their client contacts.
Source: World Bank