China Climbs the Value Chain

Related entries: Business Issues, General, Trading

China may still be the low-cost workshop of the world, but it is also taking on high-tech and high-value sectors, and positioning itself for future development and international competition.

China became the top exporter of information and communications technology (ICT) in 2004, overtaking the US, according to the OECD. Chinas ICT trade reached US$329 billion in 2004, having grown by around 38 percent a year since 1996. Chinas ICT exports rose46 percent in 2004, reaching US$180 billion.

In 2004 Chinas ICT trade surplus with the US was US$34 billion, while the figure for the European Union was US$27 billion.

In related news the Chinese Minister of Commerce, Bo Xilai, stated that China is “powerful in manufacturing but weak in brand building”. He noted that only four of the top 500 world brands are currently from China while 249 are from the U.S., 46 from France, and 45 from Japan. As part of a plan to rectify the situation China is earmarking RMB700 million for brand building assistance in 2006.

A Chinese company, Lenovo, has already taken over one of the main IT bands with its purchase of IBMs personal computing business. It may be the sign of things to come

See related news:

    China becomes world’s top ICT exporter
    National Business Review – New Zealand
    Anyone clinging to the idea that China dominates world trade only in low tech areas where cheap labour gives it an unbeatable advantage was given a rude wakeup …

    China to earmark 700 mln yuan for brand building in 2006
    Xinhua – China
    … China is “powerful in manufacturing but weak in brand building”, Bo said, citing that only four of the top 500 world brands are from China while 249 are from …

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