As all we know, China’s economy is widely estimated to have grown in excess of 9% annually for the past 25 years, and is estimated by many to outpace the GDP of the United States within 10 years. It is without doubt that the IT industry will play an important role in China’s development process, as in many developed countries.
1、 Excellent infrastructure
IT infrastructure has increased really rapidly in the past 10 years, including infrastructure with phones, PC，optical cable and export brand width. And the number of Chinese netizens reaches reached 253 million in 2008, which is the top of the world. The international export band width of Chinese Internet has reached up to 493,729Mbps which has raised 58.1%.
2、 Low cost of labor(USD $500 - $1000 / Month)
Chinese IT professionals are paid much lower than those of most other countries, which is usually USD $500 - $1000 / Month. Utilizing Chinese IT professionals can save you 50-80% over hiring internally. Rates in China are currently 20-30% less than those of India.
3、High rate of literacy(90%)
China holds a high regard for education. Its universities produce more than 5 million graduates per year with more than 700,000 of those being engineers. China currently has 200,000 IT professionals involved in the software export industry, with an additional 50,000 entering the workforce each year.
From 2001 to 2004, China increased the number of its engineering graduates from 40,000 per year to 140,000 per year, outpacing India.
Largely untapped engineering workforce.
More than 1,000,000 higher-education institutions have programs related to software and IT.
4、High level of Government Investment and Commitment to develop the IT Industry
The Chinese government has set up many software parks in different cities in order to accelerate the pace of IT development, including Cao He Jing in Shanghai, and the Zhong Guan Cun Software Parks in Beijing. Enterprises in Parks could enjoy various favorable policies, especially taxation.
A great organ, Torch High Technology Industry Development Center (Torch Center) was founded in October 1989, as an independent legal entity, subsidiary to the Ministry of Science and Technology (MOST). Under the guidance of the Ministry, and devoted to the mission of “Developing High Technology & Realizing Industrialization”, Torch Center has been making daring explorations and constant innovations to promote the advancement of high-tech industries in China.
What’s more, government has established 35 National Schools to provide software training and a steady pool of IT talent.
5、IP Protection
China’s legal system is moving in step with international IP protection standards. And the existing Chinese IP laws are not a new untested add-on. These laws are simply receiving more rigorous application in the context of the emergence of China’s new role in the world marketplace as the home of companies such as TCL or Huawei that are becoming international high technology leaders.
As a signatory of several fundamental IP international treaties, with laws in place that meet the highest international IP standards, and with substantial enforcement of IP rights, China provides now greater protection of industrial and IP than most developing countries and emerging economies.
The increasing amount of patent application authorization is a significant remarked sign of the Chinese progress of IP protection.
6、Chinese Domestic Market
The number of businesses operating in China is rapidly increasing. Over 750 multinational companies are doing technical research and development in China. And many associations of IT have been created, due to the healthy environment for the growth of the Chinese IT industry.
