Electronics industry in the People's Republic of China

Electronics industry in the People's Republic of China

The electronic information industry in China grew rapidly after the liberalization of the economy under the national strategic policy of accelerating the "informatization" of its industrial development.[1]

In 2005, China's electronic information sector made up 16.6% of the country's economic growth and its added-value output formed 7% of the GDP. Manufacturing was the sector that grew the fastest.[2]

As of 2011, China is the world's largest market for personal computers [3]

Contents

Overview

China’s electronic information industry has grown three times faster than the national GDP growth rate and has grown faster than the machinery manufacturing and metallurgy industries.[4]

In 2005, total sales in the electronic information industry increased by 28.4% from 2004 to 3.8 trillion yuan (approximately US$475 billion).[5]

The added-value base of the Chinese electronic information industry is about 900 billion yuan (approximately US$112 billion). The value added ratio is (amount of value added / total sales x 100%) only 23.4%, compared to the whole national average of 27.1%.[6]

This is evidence for China's role as an assembly base that is dependent upon overseas components and parts, intermediary goods, and capital goods.[7]

The number of electronic information industry-related companies in China jumped from 7,500 in 2001, to 17,600 in 2003 and 67,000 in 2005, with approximately 56,000 of these being manufacturing companies. The number of employees engaged in the industry grew from 3.01 million in 2001 to 4.08 million in 2003 and 7.61 million in 2005 (out of whom 5.51 million are employed in the manufacturing industry).[8]

Structure

The main areas of China’s electronic information industry are computer-related goods (including software), communication equipment, electronic parts and household entertainment equipment.

Electronic parts-related investment made up 50% of the total investment in the electronic information industry. Promotion of the electronic parts industry is a part of China’s national industrial policy to raise the ration of value added in the sector.

China’s software industry – 11% of the electronic information industry – (software products, system integration, software services, and others) growth has been rapid as demonstrated by a growth rate of 40% with sales of 390 billion yuan (approximately US$48.8 billion) as of 2006.

Approved software companies have reached 11,660, increasing by over 1,000 per annum. There are roughly 1 million employees working in China’s software industry. China’s software exports have reached US$35.9 billion in 2005, though this was short of the US$50 billion export goal set forth in the Tenth 5-Year Plan, which ended in 2005.

Market

2006 SEG Electronics Market, Shenzhen

Due to the expansion of the internal and external markets, the ratio of sales to production (sales rate) has remained at over 98%.

The vast majority of China's mobile phones, notebook computers, color displays and other products are exported, making China a global production base.

China's total export-import level of electronic information-related products in 2005 was US$268.2 billion in exports and US$220.6 billion in imports, showing growth rates of 29.9% for the former and 21.9% for the latter. The ratio of total exports and total imports in China was 35.2% for exports and 33.4% for imports.

Additionally, China's trade surplus was recorded as US$47.6 billion, with roughly half of the US$100 billion of China's total trade surplus going toward savings. There has been no change in the essence of China's export-oriented industries.

2006 targets for sales and added value in the electronic information industry are 4.6 trillion yuan (approximately US$576 billion, with a growth rate of 21%) and 1.1 trillion yuan (approximately US$138 billion, with a growth rate of 22%), respectively. As a whole, it is expected that large-scale growth will continue as before, though export-import growth has been set at a low rate of approximately 15%, taking into account the effects of the revaluation of the yuan.

Foreign firms

China's electronic information industry, like much of its economy, is both export-oriented and foreign capital-led.

In 2005, the sales, added value, profits, and exports of foreign firms (including 6,480 firms with 100% foreign capital, merged firms and joint firms) reached 2.4 trillion yuan, 503 billion yuan, 82.2 billion yuan, and US$234 billion, respectively, accounting for 77%, 77%, 77% and 87% of China's total electronic information industry for their respective categories. These figures are all considerably higher than 2004. The export surplus of US$44.8 billion produced by 100% foreign capital firms (2,241 firms) accounted for 94% of China's total.

The total ratio of value added for foreign firms in China is 20.9%, however, which is far behind the 27.6% ratio of local firms. There has been no major change in foreign firms' strategy for using China as an assembly base. Recently, though, there has been increasing activity by foreign firms regarding local management centers and R&D bases, as well as in investment in the electronic parts industry.

See also

References

External links


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Industry of the People's Republic of China — Industry produced 53.7 percent of the People s Republic of China’s gross domestic product (GDP) in 2005. Industry (including mining, manufacturing, construction, and power) contributed 46.8 percent of GDP in 2010 and occupied 27 percent of the… …   Wikipedia

  • Automotive industry in the People's Republic of China — Chang an Avenue in Beijing. Since late 2008, the People s Republic of China has been the largest automotive market in the world.[1][2] …   Wikipedia

  • Pharmaceutical industry in the People's Republic of China — The pharmaceutical industry is one of the leading industries in People s Republic of China, covering synthetic chemicals and drugs, prepared Chinese medicines, medical devices, apparatus and instruments, hygiene materials, packing materials, and… …   Wikipedia

  • Biotechnology industry in the People's Republic of China — The People s Republic of China has seen double digit growth in its biotechnology industry and has gone from being one of the slowest to one of the fastest nations in the adoption of new biotechnologies. The biotech sector is seen in China and… …   Wikipedia

  • Telecommunications industry in the People's Republic of China — This article discusses the telecommunications industry in mainland China. For Hong Kong and Macau, see Communications in Hong Kong and Communications in Macau. The telecommunications industry in China is dominated by three state run businesses:… …   Wikipedia

  • Shipping industry of the People's Republic of China — A COSCO container ship sails from Boston Harbor. In 1961 the People s Republic of China established a state run maritime shipping company and subsequently signed shipping agreements with many countries, laying the foundation for developing the… …   Wikipedia

  • Mobile phone industry in the People's Republic of China — Main articles: Telecommunications in China and Telecommunications industry in China 3G TD SCDMA mobile phones on display at a China Mobile s branch (Photo taken in February, 2010, in Dalian, China …   Wikipedia

  • Economy of the People's Republic of China — Economies of Special Administrative Regions of Hong Kong and Macau are administered separately from the rest of People s Republic of China. Therefore, the information below pertains only to mainland China unless specified otherwise. For the… …   Wikipedia

  • Energy policy of the People's Republic of China — The energy policy of the People s Republic of China is a policy decided on by the Central Government with regard to energy and energy resources. The country is currently the world s largest emitter of greenhouse gases according to a Dutch… …   Wikipedia

  • Military budget of the People's Republic of China — The military budget of the People s Republic of China in US$ billions. The military budget of the People s Republic of China (PRC) is the portion of the overall budget of China that is allocated for the funding of the military of the People s… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”