China "uneffected", by Asian currency crisis. More investment, manufacturing will come to China. DVD exports from China???????
Fiercer competition in '98 Money crisis aiding home PC makers
THE financial turmoil shaking Southeast Asia's economy is not likely to have an adverse impact on China's PC industry but, instead, may render China an opportunity, according to a senior official with the Ministry of the Electronics Industry (MEI).
"From what we have found out from the financial crisis in Southeast Asia, we don't expect much of a harmful influence on our PC industry," said Chen Chong, vice-director general of MEI's Department of Computer & Information Technology Advancement.
Favoured by a comparatively stable national economy, China's PC industry will maintain its developing tempo, Chen said.
"It goes without saying that at least 3 million PCs will be sold in the Chinese market this year," he predicted.
Chen's point of view was reinforced by a quarterly report announced by the market research company Dataquest.
The report said China's robust market assisted the Asia-Pacific PC market in growing 18 per cent in the third quarter of this year, albeit many Asian countries were then experiencing a financial crisis.
Cherry Velarde, an analyst of Dataquest, said China's domestic demand for PCs continues to make headway thanks to an immunity to the currency crisis. Twenty-seven per cent of the total PCs sold in the Asia Pacific region in the third quarter went to China.
The Chinese mainland recorded the biggest growth margin in Asia-Pacific between July and September, the report said.
Although he agreed the financial breakdown should be taken into consideration by China's policy-makers, Chen was optimistic that this crisis is a good opportunity for China's IT industry.
Because there is a lot of uncertainty in Southeast Asia where IT manufacturers are located, many companies will probably consider moving their plants to the economically stable China, Chen said.
China's large number of talented workers are capable of meeting the challenge, he added.
But he pointed out China's exports of electronic products will be impeded because of the appreciation of renminbi.
China's electronics manufacturers, especially those based in the Pearl River Delta region, are the component or peripheral suppliers of many world famous IT companies.
"The strong renminbi encumbers our exports, and the devaluation of currencies of Southeastern countries adds leverage," he said.
Chen said this raises a big challenge for domestic producers to make technological innovations, thus enhancing the competitive edge of their products and lessening the detrimental effects of the higher export costs.
Actually, some domestic IT companies like Legend, Founder and Tontru, in an attempt to extend their presence in the international market, have already begun to make efforts in this field.
Commenting on China's PC market in 1998, Chen said competition will become even fiercer as a number of new players take part in the game.
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Date: 12/03/97
Author: Wei Ke
Copyrightc by China Daily |
