IT Products Benefit From Boom in Sector

Revenue from the information technology product sector in China jumped 26 percent on an annual basis in the first 10 months of this year, thanks to the boom in electronic components, IT services and software business, the industry regulator said yesterday.


Exports of IT products rose 21 percent in October, up 3 percentage points from the previous month, the Ministry of Industry and Information Technology said.


The rise signalled that the country’s IT exports, which accounted for one-third of total exports, continued to rebound after the global financial crisis, industry insiders said.


Of particular interest is the software sector where in the first 10 months, China’s software revenue soared 29 percent from a year ago to 1.09 trillion yuan (US$164 billion).


From January to October, China’s IT industry revenue climbed 25.9 percent annually to 5.05 trillion yuan.


“The strong export growth, with a higher rate compared with a year ago, was due to exports by many foreign invested firms,” the ministry said in a statement yesterday.


Top IT giants, such as United States-based Intel Corp, Finland-based Nokia Corp, and South Korea-based Samsung, have invested heavily in the Chinese mainland to tap the domestic and overseas markets, for example Intel’s investment of US$2.5 billion in Dalian and Dell’s announcement to invest US$100 billion in China within next 10 years.


Fixed investments in IT sector jumped 38 percent from a year ago to 60.2 billion yuan in October.


 


 

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