more... 2006-2007 Annual Report on the Export Competitiveness of China's Electronic Information Industry

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2006-2007 Annual Report on the Export Competitiveness of China's Electronic Information Industry

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Form of report: PDF file, around 15,000 English words

Author: City Development Strategy Consulting Center, CCID Consulting

Price: USD1,700 for hardcopy version and USD1,900 for digital version

Research fields: electronic information industry, including communication, computer, electronic home appliances, electronic devices, etc.

Enterprises involved: IT vendors

Report Highlights

Since 1990s, as the main body of the global high-tech industry, the information industry has been growing by leaps and bounds. Its maturity has become determinant to a nation's economic development. With the advances in the wave of IT application worldwide, information technology and information resources have become a key impetus to countries' economic development and the foundation of expanded production.

By seizing the opportunity brought about by the division of work in the global IT industry and international transfer, and by leveraging comparative advantages, China's electronic information industry has achieved the historical transition from an emerging industry to a dominant industry and a pillar industry in the national economy. At the same time, IT products have an important engine and dominant force in China's exports. In 2006, IT product exports still maintained fast growth, totally US$308.4 billion, with a YOY rise of 15%; trade structure was further optimized.

With regard to comparative advantages, China's export competitiveness for various kinds of electronic products is improving year by year. From 1999 to 2005, trade competition index climbed from 0.008 to 0.097, with an annual growth rate of 52%. Main reasons: China's electronic information industry still has advantages in the cost of production factors; the industry's economy of scale and the economy of agglomeration are emerging. China's position as a global production base for IT product is being formed. Growing market size becomes the external force pushing the transfer of multinationals. While multinationals keep moving production bases to China, the transfer of R&D bases is coming into being. These factors give a boost to the continuous expansion of imports and exports in China's electronic information industry and the remarkable improvement of export competitiveness.

On the other hand, however, compared with developed countries and foreign-invested enterprises, Chinese IT vendors still have poor export competitiveness; on the two indicators with BCG Matrix as evaluation system (market share and profit margin), Chinese IT vendors still lag considerably behind multinationals. Main reasons: Chinese enterprises generally do not have core technologies; they are largely engaged in the processing of low-end intermediate products and the assembly of parts and components, with low product value added; structural contradictions still exist in exports; Chinese enterprises are largely engaged in processing with imported and supplied materials, relying heavily on foreign capital. It boils down to this: The export competitiveness of Chinese IT products remains weak. Meanwhile, with the evolution of the foreign trade, some new problems and challenges have emerged: labor cost gradually rises, trade barriers appear frequently, RMB exchange rate is on the rise, and international competition escalates. While maintaining quantitative growth, it is necessary to improve the quality and profit margin of Chinese IT product exports, and increase the exports of products with high value added, to boost export competitiveness, forming a new situation where IT product exports push the growth of the country's foreign trade.

The report probes the exports of Chinese IT products in 2006, analyzes Chinese IT products' export competitiveness in the respect of comparative advantages and competitive advantage, and puts forward policy recommendations for seizing opportunities to promote exports of IT products. The aim is to provide beneficial decision reference for government departments to identify the industry's profile, and strengthen regulatory and service functions to promote the industry's healthy development. Meanwhile, it helps enterprises implement the strategy of going international, achieve trade upgrade and transformation, to boost core competitiveness. Moreover, it presents in-depth quantitative forecast of the market, and conducts modeling regression and expert verification for the whole market and market segments, and derives valuable trend analysis and quantitative results.

Framework of the Report

Main Conclusions

Key Findings

I. Present Situation, Characteristics and Trend of the Exports of IT Products

(I) Present Situation

(II) Characteristics

(III) Trend

II. Review of and Outlooks on China's Exports of IT Products

(I) Present Situation of Exports

(II) Export Characteristics

(III) Export Trend

III. Theoretical Base for Studying the Export Competitiveness of IT Products

(I) Definition and Essence of Competitiveness

(II) Modern Theories Relating to Competitiveness

(III) Major Factors Affecting the Export Competitiveness of IT Products

IV. Index System for Assessing the Export Competitiveness of China's IT Products

(I) Design Principle

(II) Elements

(III) Analysis Methods

(IV) System Framework

V. Study of the Industry's Export Competitiveness