Changing China

Article by Ajit Kambil and Paul Lee

INTRODUCTION

Everyone recognizes China as a low-cost manufacturer and a huge potential market. But most do not realize China is emerging as a key player in shaping technology standards – standards that could define the nature of global competition in the technology, media and telecommunications sector for years to come. From operating systems and software applications to storage media, wireless communications and satellite positioning, Chinese government agencies and companies are looking to break the hold of developed economies on standards and working to shape new technology standards for economic advantage.

China is using its massive markets and spectacular growth as leverage in the standards war. The country’s domestic market for electronic information products has grown from $20.2 billion in 1999 to $77.1 billion in 2002¹. China is already the world’s largest cellular mobile market, currently boasting 300 million subscribers². China is also