Liberalization & Deregulation

Internet Diffusion

Electronic Commerce

Hardware Manufacturing

Software Development 

Who uses IT?

IT Labor Market

IT Geographics

IT Financing

Government Policies

Legal Environment

Transborder Data Flows 

Analysis: IT Strengths & Weakness

Analysis: Impacts on the Business

Sources and Links

Historical stimulus for IT growth versus current stimulus

Historical stimulus for IT growth came from government initiatives mainly for military and research purposes. After the Deng xiaoping's Economic Reform, government realized the importance of information technology and started to promote nation-wide IT improvement by deregulation telecommunication. At the end of 1990s, large amount of oversea chinese scholar and businessmen returned to their homeland. Because of their effort and the government's willingness to catch up its IT capability, IT industry in China has begun a big jump. According to International Data Corporation, PC shipments in China are expected to surge 32 per cent to 6.5 million units in 2000. During the second quarter of 2000, China domestic PC achieved 36.8% industrial wide growth while home PC sales has had more than 15% growth rate. Most are domestic brands. From 1995 to 1998, IT industry structure went through an apparent change. It has had a high concentration of 90% of the value from 11 provinces. Total number of enterprises reduced from 3502 to 2914 with 122% total growth. The following statistics are from January 2000 Semi-Annual Survey Report On Internet Development In China. 

The distribution of domain names by geographic locations (provinces) 
 

	Beijing	Shanghai	Tianjin	ChongQing	Hebei	Shanxi	Neimenggu
Domain Names	17,871	4,284	855	347	821	298	221
%	36.7%	8.9%	1.76%	0.81%	1.79%	0.61%	0.45%
	Liaoning	Jilin	Heilongjiang	Jiangsu	Zhejiang	Anhui	Fujian

4. General Demographics (1) Gender: Male, 79%; Female, 21% 

(2) Age: 
 

Under 16	18-24	25-30	31-35	36-40	41-50	51-60	Over 60
2.4%	42.8%	32.8%	10.2%	5.7%	4.5%	1.2%	0.4%

(3) Marital Status: un-married, 64%; married, 36% 

(4) Geographic Distribution (Province): 
 

Beijing	Shanghai	Tianjin	Chongqing	Hebei	Shanxi	Neimenggu
21.24%	11.21%	2.68%	1.90%	2.59%	1.04%	0.50%
Liaoning	Jilin	Heilongjiang	Jiangsu	Zhejiang	Anhui	Fujian
4.27%	1.50%	1.66%	5.91%	4.51%	0.97%	2.69%
Jiangxi	Shandong	Henan	Hubei	Hunan	Guangdong	Guangxi
1.14%	5.19%	2.11%	3.32%	3.44%	12.94%	1.34%
Hainan	Sichuan	Guizhou	Yunnan	Tibet	Shanxi	Gansu
0.49%	3.00%	0.46%	0.63%	0.03%	1.96%	0.57%
Qinghai	Ningxia	Xinjiang
0.08%	0.16%	0.47%

(5) Education Attainment: 
 

Under high school	High School	2-3 Years college	Bachelor Degree	Master Degree	Doctor Degree
3%	13%	32%	45%	6%	1%

(6) Occupation/Industry: 
 

Senior Managers in Government and Industry	Financial Industry	Entertainment and Sport	Student
3%	6.2%	1.8%	21%
Staff in Government Agencies	Service industry	Other Professionals	Faculty
6.2%	2.6%	8.6%	4.8%
foreign and JV Firms	Medical Professionals	Mass Media Professionals	Workers
8.7%	2%	1.8%	1.8%
Small Business	Military adn Law Enforcement	Computer Industry	Agriculture
2.5%	1.5%	12.9%	0.3%
General Commerce	Telecom Industry	Others
7.4%	5%	1.9%

5. Use and Access 

(1) Access Location: 
 

Home	Work/School	Internet Cafe	Other Locations
50%	37%	11%	2%

(2) Who pays for Access: (Work/School: 1,086,830,000. Personal Fund: 1,025,810,000) 
 

Work/School	Personal Fund	Both
21%	59%	20%

(3) Hours of Internet Use Per Week :17 hours 

(4) Amounts of E-mail Accounts: 35,600,000. Among them, free mail accounts: 26,700,000 

Source: 13