Chapter 4 - Development of China's Electronics Industry

Abstract

This chapter outlines the development of China's electronics industry. China was a late starter in developing its electronics industries. However, significant progress has been made through the implementation of a series of national development plans and government programs. Recent achievements in the electronics field demonstrate China's entry as a world-class player. In 2005, China's high-tech exports totaled US$220B; accounting for 28% of the country's total out-bound shipments, and electronics played a large role in this. China's national economic goal-setting and planning mechanism is the “Five-Year Plan” (FYP). The development of the country's electronics capabilities has hinged on its ability to define and achieve reasonable goals in the FYPs. The Ministry of Information Industries was created on March 1998 by merging the former Ministry of Post and Telecommunications. China is now allowing foreign companies to invest in China via contractual agreements, joint ventures, and foreign direct investments. Export orientation is a salient feature of China's electronics industry, which leads the nation in manufacturing products trade. The China National Electronics Import and Export Corporation (CEIEC) is the main import/export channel for China's electronics products. National planning of major electronics projects called “Golden Projects” has been implemented to modernize the country's information technology infrastructure and help local industries.