Page 492 - 2021 White Paper
P. 492
1 White Paper on the Business Environment in China Communication
2.17 Information and
Technology Industry
Key Take-Aways majority of international ICT events, gatherings,
conferences were canceled. Tech leaders including
• China’s new 5G standards as something Google, Microsoft, Adobe, Facebook, NVidia,
that can shape the playing field and landscape Cisco, and Salesforce among others were also
for the future of these technologies, but China forced to call off their yearly events. Such events
will have challenges dislodging the dominance of and gatherings offer vital business opportunities
Europe and the US. to ICT companies to showcase their products
and solutions. Cancellation of such events has
• China’s information and communication certainly affected the forthcoming opportunities
technology market remains among the most for market players, making revival of the industry
dynamic sectors in the economy. The market more difficult. With a jaw-dropping decline in
was projected to reach US$8.1 trillion by 2021, China’s manufacturing capacity, the global supply
representing 55% of China’s GDP. chain for ICT sector is disrupted to a much greater
extent. Being a manufacturing hub, China was a key
• China is the world’s second-largest cloud manufacturing location of some of the global ICT
computing market. Alibaba and Tencent are leaders including IBM, Intel, Apple, and Qualcomm
among the best-positioned to capitalize. among others. Although China is striving hard to
regain its manufacturing capacity, it is difficult to
Covid-19 Repercussions predict the time it will take for complete revival
of the operations. This has certainly obstructed
The Covid pandemic has affected every the supply chains of the ICT industry, temporarily.
industry economically and the global information Companies like Apple, who have China as the key
and communication technology (ICT) sector is no manufacturing hubs and also one of the major
exception. Majority of the local and multinational markets for their products, were severely hit from
ICT corporations halted most of their both sides, and had severe revenue implications
manufacturing operations and canceled China’s for the companies throughout 2020. The
participation in important events and conferences telecommunications industry witnessed a surge
in the first quarter of 2020. However, the industry from past in the last few months of 2020. After
was determined to make a solid comeback and the onset of COVID-19 crisis, social distancing
the average industry growth was in the range of limited consumers’ mobility; hence, people were
7-8% by end of 2020. A majority of ICT projects seeking new ways to keep themselves busy,
are losing their momentum owing to the delays entertained, and connected. Websites such as
or even cancellations in some conditions. Major Facebook, Netflix, and YouTube witnessed a
segment of the ICT sector, including hardware and growth of 27.0%, 16.0%, and 15.3% viewership
IT services experienced a nearly 4% dip in revenues growth respectively in the US. Similar trends were
in the first quarter of 2020. Companies were also observed across the globe, including China
forced to meet their existing deadlines with limited where social networking, short videos, and mobile
workforce, and hence are hardly concentrating on gaming has gained momentum. Consequently,
setting new targets and projects. This, in turn, has social distancing and isolation have helped the
slowed down the growth of the sector and stunted telecommunication sector maintain its growth
the previously predicted optimistic industry trajectory (MMR).
growth. With the onset of Coronavirus crisis, the
492
2.17 Information and
Technology Industry
Key Take-Aways majority of international ICT events, gatherings,
conferences were canceled. Tech leaders including
• China’s new 5G standards as something Google, Microsoft, Adobe, Facebook, NVidia,
that can shape the playing field and landscape Cisco, and Salesforce among others were also
for the future of these technologies, but China forced to call off their yearly events. Such events
will have challenges dislodging the dominance of and gatherings offer vital business opportunities
Europe and the US. to ICT companies to showcase their products
and solutions. Cancellation of such events has
• China’s information and communication certainly affected the forthcoming opportunities
technology market remains among the most for market players, making revival of the industry
dynamic sectors in the economy. The market more difficult. With a jaw-dropping decline in
was projected to reach US$8.1 trillion by 2021, China’s manufacturing capacity, the global supply
representing 55% of China’s GDP. chain for ICT sector is disrupted to a much greater
extent. Being a manufacturing hub, China was a key
• China is the world’s second-largest cloud manufacturing location of some of the global ICT
computing market. Alibaba and Tencent are leaders including IBM, Intel, Apple, and Qualcomm
among the best-positioned to capitalize. among others. Although China is striving hard to
regain its manufacturing capacity, it is difficult to
Covid-19 Repercussions predict the time it will take for complete revival
of the operations. This has certainly obstructed
The Covid pandemic has affected every the supply chains of the ICT industry, temporarily.
industry economically and the global information Companies like Apple, who have China as the key
and communication technology (ICT) sector is no manufacturing hubs and also one of the major
exception. Majority of the local and multinational markets for their products, were severely hit from
ICT corporations halted most of their both sides, and had severe revenue implications
manufacturing operations and canceled China’s for the companies throughout 2020. The
participation in important events and conferences telecommunications industry witnessed a surge
in the first quarter of 2020. However, the industry from past in the last few months of 2020. After
was determined to make a solid comeback and the onset of COVID-19 crisis, social distancing
the average industry growth was in the range of limited consumers’ mobility; hence, people were
7-8% by end of 2020. A majority of ICT projects seeking new ways to keep themselves busy,
are losing their momentum owing to the delays entertained, and connected. Websites such as
or even cancellations in some conditions. Major Facebook, Netflix, and YouTube witnessed a
segment of the ICT sector, including hardware and growth of 27.0%, 16.0%, and 15.3% viewership
IT services experienced a nearly 4% dip in revenues growth respectively in the US. Similar trends were
in the first quarter of 2020. Companies were also observed across the globe, including China
forced to meet their existing deadlines with limited where social networking, short videos, and mobile
workforce, and hence are hardly concentrating on gaming has gained momentum. Consequently,
setting new targets and projects. This, in turn, has social distancing and isolation have helped the
slowed down the growth of the sector and stunted telecommunication sector maintain its growth
the previously predicted optimistic industry trajectory (MMR).
growth. With the onset of Coronavirus crisis, the
492
