The growing Chinese economy

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Description

Since Chinese open policy in 1979, China experienced a big change in the past 30 years. Now China becomes more and more important in World economy. Mobile device2015 df1.jpg
Source: http://en.wikipedia.org/wiki/Image:Prc1952-2005gdp.gif

When Chinese people are richer, they tend to spend more money on other things, not just food and clothes. The latest mobile devices have become fasion in China. Not just attracted by mobile devices' functions, Chinese people also use them as a way to show off. The bigger the market, the harder companies work in order to provide people the fast the latest devices. In other worlds, Chinese people's needs for new mobile devices makes a big contribution for the developing of new mobile devices technology. Of course we can say the growing Chinese economy is one of the driving forces for mobile devices.

China's large population, huge market attracts billions of investment. It's also one of the best test place in the world for a new technology innovation. For mobile devices chinese market is extremely attractive. Here're some data from IT Facts:


Mobile handset shipments from manufacturers headquartered in China grew dramatically in 2007, reaching 229 mln units for the year, representing a 76.2% annual growth rate from 130 mln in 2006. However, this rate of growth will slow considerably in 2008, dropping to about 19.7% to reach 274 mln units, according to iSuppli Corp. (from IT FACTS)

In-Stat published its outlook on Chinese mobile phone and handheld market. Multimedia phone shipments in China will reach 165.0 mln in 2011, representing a penetration rate of 81%. High-pixel camera phones will be the next competitive focus in China’s multimedia phone market. Mobile phone makers are aiming to change cellphones into personal communication and entertainment centers. Chinese mobile users show a strong preference for combined MP3 players/mobile phones. Around 70% of Chinese music phone and camera phone owners express strong interest in more high-end equipment. (from IT FACTS)

Chinese people change their mobile devices every 8-12 months while in the Europe, people change their mobile devices every 40 months on average. (from Chinese mobile phone change rate)


Enablers

  • Reform and Open-up policy

Since 1979, China began to make major reforms to its economy. The Chinese leadership adopted a pragmatic perspective on many political and socioeconomic problems, and sharply reduced the role of ideology in economic policy. Political and social stability, economic productivity, and public and consumer welfare were considered paramount and indivisible. (from wikipedia) After the policy, Chinese economy starts to grow fast.

  • WTO and foreign investment

China has been a member of the WTO since 2001. After that, there's more and more foreign direct investment. Those money keeps Chinese economy grows in a stable rate.

  • Beijing 2008 Olympic Game

Because of Beijing 2008 Olympic Game, China has a lot of investment programmes, drives Chinese economy.


Inhibitors

  • Government regulation

Chinese government is a relatively strong government in home control. It issued lots of laws, regulations to protect local business. After became a member of WTO, China became more open. But the government is still controling some crutial industries. For example, now in China, China Mobile and Unicom are the 2 mobile service providers. In recent year, China Telecom came into this mobile business. But still, The whole Chinese mobile market is ruled by these 3 companies, which all have strong government backgrounds. This kind of monopoly can result in incomplete competition and hinder the development of the whole industry.

  • A large population

China has 1.3 billion people. Such a large population brings a huge market. But for this country's economy, it brings a lot of social problems, e.g. pollution, bubble in real estate.

  • Low education in rural area

Although Chinese government promoted 9 year compulsory education program since 1986, till now there're still kids can't go to school. Most of them live in the countryside. Low education must result in other social problems in the future, hinder the development of Chinese economy.

  • Inadequate basic information technology facilities

The basic information technology facilities, like Internet, bandwidth, wireless network are still inadequate in China.

Paradigms

  • Before: Mobile phone's first invented in the Western country, then it develops there.
  • Now: A big portion of mobile devices are sold in China. Top research organizations (company & non-profit) all have branches in China. Chinese people's purchasing power becomes much bigger. Mobile devices with a lot of functions sold exteremely good in China.

Web Resources


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