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Projected doubling of China’s GDP to help drive ICT growth

Jack Loo | Nov. 23, 2012
Vendors encouraged to focus on cloud computing, mobile technology, social networking and big data: IDC

The continued growth of China's economy is expected to help drive the country's ICT sector, according to IDC.

The recently concluded 18th China Communist Party Congress, which saw outgoing President Hu Jintao deliver a report on China's economy and a roadmap for the next decade, with a projected doubling of the 2010 GDP and per capita income for urban and rural residents, is expected to create strong demand for consumer goods. Over the next 10 years, the annual growth rate of China's GDP and per capita income is expected to be higher than 7.2 percent.

"In terms of competitive capacity building, the IT companies should put great emphasis on the Third Platform, based on cloud computing, mobile technology, social networking, and big data. As for competition-and-cooperation strategy, comprehensive considerations must be given to the significant value of the eco-system of the whole ICT industry chain," said Lianfeng Wu, Associate Vice President of IDC China.

According to IDC, China is expected to see a boom in the industrial software and ICT solutions sector. Fuelling the growth further will be the country's urbanisation rate, which is projected to exceed 60 percent in the next 10 years, leading to the fast growth of urban IT infrastructure and services.

In addition, the increased demand for IT support for agricultural modernisation will boost the steady development of broadband infrastructure construction, comprehensive information service stations, grassroots-level e-governance solutions, Internet of things technology, and personal terminal devices (PC, tablet, smartphone) in rural areas.

IDC also noted the interest from the Chinese officials in smart city development. Through data collection from widely deployed end-points on the Internet of things, cloud data storage, and big data mining, a smart city system can better support the innovative social administration. In February 2012, 154 Chinese cities in 28 provinces proposed the idea of building a smart city with a total investment of 1.1 trillion RMB - 41 of these cities have incorporated this idea into their 12th five-year plans or government work reports.

Environment protection is also high on the Party's agenda, according to IDC. The Twelfth Five-Year Plan of Energy Saving and Emission Reduction released in August 2012 identifies the 10 key demonstration projects with the investment of 2.4 trillion RMB. Where ICT is involved in these projects includes energy-saving reconstruction, contracting energy management processes, industrialisation of energy saving technology demonstration, promotion of recycling economy demonstration, and energy-saving capacity building, etc. 


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