Reply #25: China Overtakes U.S. as Supplier of Information Technology Goods

[54anickel]

http://www.nytimes.com/2005/12/11/business/worldbusiness/11cnd-hitech.html

BEIJING, Dec. 11 - After almost a decade of explosive growth in its electronics sector, China has overtaken the United States as the world's biggest supplier of information technology goods, according to a report by the Organization for Economic Cooperation and Development.

Data in the report, to be published on Monday, show that China's exports of information and communication technology - including laptop computers, mobile phones and digital cameras - increased by more than 46 percent to $180 billion in 2004 from a year earlier, easily outstripping for the first time United States exports of $149 billion, which grew 12 percent from 2003.

The figures compiled by the Organization for Economic Cooperation and Development, based in Paris, also reveal that China has come close to matching the United States in the overall value of its trade in information and communications technology products. The value of China's combined exports and imports of such goods soared to $329 billion in 2004 from $35 billion in 1996. Over the same period, the value of American information technology trade expanded at a slower rate, to $375 billion from $230 billion.

To some industry experts, the report is more evidence that China has made progress in its long-term plan to upgrade the capacity of its manufacturing as it strives to become a major economic power.

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And foreign companies are increasing their research and development in China in a bid to generate real innovation. "Ten years ago, it was done just to please the Chinese, but now these R.&D. facilities are integral to their global manufacturing," said Mr. Kobler, the consultant.

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