Investing in Hi-Tech Industries in China: Pros and Cons
1.0 Introduction
China introduced market reforms in the early 1980s; only a third of the economy is now directly state-controlled. Since joining the World Trade Organization in 2001, China has rapidly become an economic force, doubling its share of global manufacturing output and creating a commodity-market boom. In 2004 China became the largest exporter of information and communication technology (ICT) exports.
In China, the Hi-tech industry, that includes software industry is a recent phenomenon and the early industry participants were government-funded research institutions spin-offs Legend and Founder were setting up their operations in the year of 1980. China’s market-oriented economy reforms has largely encouraged a large numbers of entrepreneurs to apply their technical skills and set up new ventures to produce software for the vast home market. However, the Chinese software industry has been privately owned recently. According to Heberer (2000), the Chinese government has not only publicly endorsed their “Heroic” entrepreneurial activities and regarded them as a consequence of economic reforms and has been implemented a range of policies that target property rights, taxation, venture creation and export to promote the growth.
2.0 Pros 2.1 Huge Potential Market for Semiconductor ( China VS Vietnam ) a) Population and Markets Size
According to Distribution of World Population-Data Report 2006, the China alone comprises about 20% of the world population and is the largest population countries in the world. Estimate, it population already achieve around to 1.32 billion. It means that, it is a quite huge potential market because of their largest population. However, estimates population of Vietnam is around 87 million and near to 1.3% of the world population. It means that, the markets size in Vietnam is not very huge and potential if compare with the China. So, as wisdom investors they will choose the China as a market to invest not only
China introduced market reforms in the early 1980s; only a third of the economy is now directly state-controlled. Since joining the World Trade Organization in 2001, China has rapidly become an economic force, doubling its share of global manufacturing output and creating a commodity-market boom. In 2004 China became the largest exporter of information and communication technology (ICT) exports.
In China, the Hi-tech industry, that includes software industry is a recent phenomenon and the early industry participants were government-funded research institutions spin-offs Legend and Founder were setting up their operations in the year of 1980. China’s market-oriented economy reforms has largely encouraged a large numbers of entrepreneurs to apply their technical skills and set up new ventures to produce software for the vast home market. However, the Chinese software industry has been privately owned recently. According to Heberer (2000), the Chinese government has not only publicly endorsed their “Heroic” entrepreneurial activities and regarded them as a consequence of economic reforms and has been implemented a range of policies that target property rights, taxation, venture creation and export to promote the growth.
2.0 Pros 2.1 Huge Potential Market for Semiconductor ( China VS Vietnam ) a) Population and Markets Size
According to Distribution of World Population-Data Report 2006, the China alone comprises about 20% of the world population and is the largest population countries in the world. Estimate, it population already achieve around to 1.32 billion. It means that, it is a quite huge potential market because of their largest population. However, estimates population of Vietnam is around 87 million and near to 1.3% of the world population. It means that, the markets size in Vietnam is not very huge and potential if compare with the China. So, as wisdom investors they will choose the China as a market to invest not only