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China to become world's largest IT market
(Xinhua)
Updated: 2004-05-28 10:13

China is expected to become the largest information technology (IT) market in the world in the next five years, according to an official from the Ministry of Information Industry (MII).

Guo Fuhua, deputy director of the policy regulating department under the MII, said earlier this week that China's IT industry has the potential for rapid growth as the demand is ever increasing.

China will become the world's largest market for computer and accessories in the next five years, said Guo, acknowledging that computers will be popular in Chinese families in that period.

In 2004, China would likely turn out 48 million computers, a rise of 29 percent over last year. The figure is expected to reach 90 million in 2008.

Meanwhile, the demand for electronic household appliances will soar. Although household appliances are very popular in China, most of them are in need of upgrading or repairs. The new generation of digital electronic products will enter Chinese homes in large quantities in the years ahead, said Guo.

Guo also expects a booming telecommunication industry. China now ranks No 1 in the number of telephone subscribers and No 2 in Internet subscribers. But owing to China's large population, the country's telecommunication market still has great potential.

Statistics show that every 100 people now have 21.2 fixed phones in China, while the ownership rate of mobile phones for Chinese people is 20.9 percent, both lower than those of developed countries.

The fact that China will become the largest automobile market will also stimulate the development of IT industry, said Guo, citing that the automobile industry has a close relationship with information technology. The utilization of advanced information technologies in the auto industry will promote the use of intelligent automobile systems like fuel, chassis and truck- mounted systems.

Information technology has been utilized in almost all sectors of China's economy. E-business, e-government and technical upgrading of state-owned enterprises will all provide more opportunities for the development of the industry, said Guo.

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