Sector report
ICT INDUSTRY IN CHINA
OFFICIAL PROGRAM
THE ICT INDUSTRY IN CHINA This report provides a comprehensive reference for Swiss companies in the ICT industry wanting to expand and/or develop in mainland China. It contains market insights on the rapidly changing ICT market in general as well as selected sub-sectors. Interviews with several local experts and entrepreneurs were conducted to give the reader a better understanding of the market.
Language: English Number of pages: 977 Author: Daxue Consulting Other ICT Reports: Are you interested in other Reports for other sectors and countries? Please find more Reports here: www.s-ge.com/reports
Contents
10.1.
Case Study: Alibaba Cloud Computing _______ 57
11.
SECURITY SYSTEMS ___________________ 58
China Economic Growth __________________ 6
12.
BIG DATA ____________________________ 61
2.2.
The ICT market ________________________ 7
12.1.
Case Study: Taobao ____________________ 63
2.3.
ICT Talent ___________________________ 9
2.4.
Clusters _____________________________ 11
13.
HEALTHCARE _________________________ 64
2.5.
Overview company set-up via hong kong ______ 19
13.1.
Case Study: China Telecom and LifeWatch ____ 66
3.
LEGAL ANALYSIS______________________20
14.
INTERVIEWS __________________________ 67
14.1.
Interviews: Benjamin Joffe _______________ 67
4.
FINANCIAL SERVICES __________________24
14.2.
Interviews: Richard Robinson _____________ 68
4.1.
Case Study Alibaba ____________________ 26
14.3.
Interviews: David Kay __________________ 69
4.2.
Case Sutdy Yu’E Bao ___________________ 27
14.4.
Interviews: Franck Nazikian ______________ 72
4.3.
Case Study P2P market _________________ 28
14.5.
Interviews: Kevin Der Arslanian ___________ 74
5.
SOFTWARE ___________________________29
14.6.
Interviews: William Bao Bean _____________ 76
5.1.
Case Study CRM and ERP Market __________ 31
14.7.
Interviews: Bruno Bensaid _______________ 82
5.2.
Case Study: Huawei Technologies __________ 34
14.8.
Interviews: Sebastien Gaudin _____________ 84
14.9.
Interviews: Niva Qiu ___________________ 86
6.
E-LEARNING __________________________36
14.10.
Interview: Yixin Yang___________________ 87
6.1.
Case Study: MOOC (Massive Open Online Course)39
14.11.
Interviews: Laiyou Sun__________________ 88
7.
E-GOVERNMENT_______________________41
14.12.
Interviews: Alexis Bonhomme _____________ 89
7.1.
Case Study: ChinaCache ________________ 44
14.13.
Interviews: Carole Wai Hai _______________ 90
8.
IDC (INTERNET DATA CENTER) __________45
15.
REFERENCES _________________________ 92
8.1.
Case Study: Teamsun ___________________ 48
9.
MOBILE APPLICATION __________________49
9.1.
Case Sutdy: WeChat____________________ 53
10.
CLOUD _______________________________54
1.
INTRODUCTION ________________________4
2.
MARKET OVERVIEW ____________________6
2.1.
1. Introduction China, as a large country that has one of the biggest communication networks in the world, has huge potential for ICT enterprises to conduct and develop business. The information industry has occupied a considerable proportion in the national economy under China's current economic development level, close to 10%. Compared with America and Japan, the speed of development of China is much higher than these two countries. China's information industry, communication equipment manufacturing industry, and the size of the communication industry have been beyond the level of developing countries. Especially in regard to the communications industry size and market share China has a strong competitive advantage. The percentage of the population in China using information and communication technologies (ICT) is higher than other similar developing countries. China has about 338 million Internet users. Thanks to the strong growth of the Chinese economy over the past 30 years, China has gained social wealth and high disposable incomes, which also has led to a greater demand for ICT. The growth of the large-size manufacturing has in turn reduced product costs and made a wide range of ICT products affordable to mainstream Chinese consumers. In China, many telecommunication enterprises are state-owned, and ICT companies are strongly influenced by the attitude of government. A focus of the government is to build up ICT projects which can provide social services and promote social development. [1] The ICT sector in China can be divided into 4 aspects for enterprises: One is the access, whether the enterprise has a computer or Internet access; Two is the use, whether enterprises have a website and how they access and use the Internet; Three is electronic commerce, whether companies use the Internet for this purpose; Four is to look at whether the enterprises get the benefits and obstacles of using modern ICT.
Background knowledge What is the ICT sector? The ICT sector is a non-regulated sector that encompasses all companies and organizations that develop goods or services that process, transmit or receive information. The ICT sector can be divided into the following 3 areas: - ICT Services - Manufacturing - ICT Wholesaling, Rental and Leasing [2]
ICT Services
ICT sector
ICT Wholesaling, Rental and Leasing
ICT INDUSTRY IN CHINA
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Manufacturing
Based on this segmentation, this report provides a general analysis for the situation and trends of the ICT industry, while at the same also exploring potential opportunities. This report will mainly cover 10 sub industries listed below Financial services Software E-Learning E-Government IDC Mobile Apps Cloud Security system Big data Healthcare What is ICT? ICT (Information and Communications Technologies) The ICT sector in China includes goods and services that process, transmit or receive information; this includes technologies related to software, hardware, computer services, telecommunications, microelectronics, e-business, e-learning, e-health, wireless, multimedia and digital entertainment, as well as emerging technologies such as photonics, intelligent systems, open source software, life sciences, and digital imaging. Such statements can more accurately and roundly reflect the communication mode which supports development of information society, but also reflects the evolution of telecom in function and mission in the information age in China. [2] “Actually, many foreign companies - such as Apple (whose 2nd largest market is China) - who have made a true commitment on succeeding in China have done pretty good. I am surprised when people say that it is not possible for a foreign company to succeed in China and, as an illustration of that nonsense, mention Google or Facebook. For ideological reasons of its own, Google has chosen not to expand in China and to make a lot of noise about this decision (while still maintaining quietly a nice USD 1 B ad business in China mainland...). Facebook has not tried yet to start serious operations in China - but my feeling is that they will try that soon, although Facebook's co-founder Eduardo Saverin, when I interviewed him at CHINICT last year, did not mention anything regarding that�. Franck Nazikian, founder of CHINICT.
ICT INDUSTRY IN CHINA
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