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To: .com who wrote (35094)	8/10/1998 6:52:00 PM
From: John Rieman	Respond to of 50808

China's ready to make DVD players, but they cost too much.......... asiansources.com DVD players Capacity building in China Like their Taiwan and Hong Kong counterparts, many China manufacturers are delaying volume production of DVD players for technical and market reasons. However, the rapid adoption of DVD technology in China's electronics industry is a sign that high-volume mass production is on the horizon. In July 1997, China's DVD player industry was nearly nonexistent, as the country's main video electronics makers were busily engaged in the booming VCD segment. But by August, Jiangsu Shinco Electronics Group Co., China's biggest VCD player maker, had launched the mainland's first DVD player, and Shenzhen SAST Laserdisc System Co., another leader in the VCD field, quickly followed suit. Then, in October, Zhenjiang Jiangkui Group Co. unveiled a DVD player. Since then, China's DVD industry has been developing at a rapid pace. Several large overseas VCD player manufacturers quickly set up joint ventures in China to manufacture DVD players, hoping to offset losses in the VCD market. There are now at least 10 companies in China with the ability to produce DVD players. Most major makers in China are still uncertain when they will be able to launch volume production, as they lack the final specifications for the DVD standard. But the industry is confident these problems are going to be resolved, and most feel the discussions will result in a stronger DVD standard. In the end, it is widely believed DVD player output by China companies will be substantial in the near future. This confidence stems from the fact that many of the world's leading electronics and computer companies have huge stakes in the DVD standard. It is also bolstered by the inherent technical benefits of DVD. In particular, compatibility with VCD titles is a major draw for the China market and thus a big incentive for mainland suppliers. Most vendors can see a light at the end of the tunnel. In August last year, Zhi-shang Qin, general manager of Jiangsu Shinco, said DVD players could take three years to become popular, largely due to high production costs. The company has since altered its 18 production lines for DVD player output, and it is ready to begin batch production at any time. Zhenjiang Jiangkui plans to build an annual production capacity of 300,000 units by 1999, and by the year 2000, it hopes to have an annual capacity of between 800,000 and 1 million pieces, according to sales manager Ye-tao Jin.