The Tech Industry Boom In China
The pace of development and growth in China has stunned observers over the last couple of decades. Within a single generation, China has emerged as one of the world’s most formidable economies, and as the Chinese people become more affluent and better educated, the opportunities for expansion in the tech sector are myriad. Currently, the average Chinese citizens disposable income has tripled in the last 10 years and continuing to rise, and the demand for tech products is huge.
But the Chinese are not simply consumers of tech products – they’re also among the world’s leading manufacturers. Chinese smartphone brands such as Xiaomi are doing in China what Apple and Google have done in the United States, and the size of the Chinese market means their sales numbers are far larger. The IDC estimates that 500 million smartphones will be sold to Chinese customers in 2015, as against roughly 163 million in the US. Of those 500 million Chinese sales, 85% will be made by domestic producers like Xiaomi.
China’s role in manufacturing and hardware is already legend, but they are quickly catching up to a similar level in software and web services. Its leading social network, QZone, is the second-most popular social networking site behind Facebook, and it has 600 million monthly active users – a number that is rapidly increasing. Alipay, the Chinese equivalent of Paypal, processed over $150 billion in online transactions last year, a number that is nearly six times higher than that reported by PayPal.
Above all, China is growing rapidly. Although the rapid growth produced by industrialization cannot last forever, China continues to experience incredible rates of growth in high tech sectors. Spending on information and communications technology will grow by roughly 11% in 2015 and account for 43% of global growth in these sectors. So all the Chinese data that proved so impressive in 2014 will be even more so in 2015 – even better days are ahead for China’s technology and communication industry.
Provided is an infographic by Irishapps highlighting this tremendous surge.
By Gustav Steinhardt