China IT Market Opportunity
China is aiming to become an innovative leader in the field of IT. Today’s hot topics in China include next-generation mobile communications, next-generation Internet equipment, smart devices, Internet of Things, cloud computing, and new displays. In view of this, China is welcoming of foreign investors that have expertise in this field and have cutting-edge technology.
Large investments have already been thrown into the IT industry of China for the development of IT technologies. For instance, in a recent report by KPMG, China Mobile plans to spend US$52 billion to expand cloud services. The development in the IT industry can also serve as a strong foundation for other sectors such as finance, healthcare, logistics, etc.—all of which are willing to pay premium prices for high quality products.
Globally, China has the most internet users. Today it has above 500 million users, rising from a mere 22 million in 2000. There are also a billion users of mobile phones, and users of social network and smartphones continue to rise exponentially.
In terms of spending, China’s IT market is the fourth-largest market around the globe, after the United States, Japan, and Germany. According Business Monitor International, the country has invested a total of US$104.5 billion for the industry. Currently, it ranks as second largest software-outsourcing destination next to India. The IT industry of China is expected to grow by 15 per cent annually over the next five years.
From McKinsey and Company:
“Finding the chief information officer in a Chinese company is often hard, especially in a state-owned enterprise. Historically regarded as simply a support role for the business, CIOs were pushed three to four levels down in the organization and attracted little talent (which instead went to Internet start-ups). A typical Chinese company spends only 2 percent of revenue on IT versus international benchmarks of around 4 percent. As these companies struggle to bring technology into the core of their operations, they need massive amounts of help to do so. The cost of good IT talent is already soaring. Most Chinese companies will be unable to solve their technology challenges for themselves.”
Mckinsey and Company Report : “Doing Business in China” identified Industries with the potential for faster growth in the next decade
GSME Services to North American IT Companies Seeking to Do Business with China
Working with our China Strategic Partner, Uniquantum Investment Ltd, which has considerable expertise on China’s Information Technology Business Sector it is an area that they invest in, and raise financing for, we provide services to North American Information Technology companies seeking to do business with China which include:
- Assistance and Support in Selling IT Products, Technologies, and Services to China;
- Advice, Guidance, and Support in Securing Joint Venture IT Development and Commercialization Projects with Chinese Companies and Institutions – including support and assistance in securing project financing;
- Assistance and Support in the Marketing and Promotion of your IT Company and its Products and Services to China;
- Advice, Guidance, and Support in Securing Business and Project Financing;
- Assistance in Developing Specific IT Products, Services, and Projects for the China Market that would offer Great Opportunity for China Market Penetration and Success;
- Ongoing Business Development and Operations Support in China;
- China Asset and Business Management Services;
- Support in Securing Necessary Business Partners and Necessary Business Support Services in China (including high level legal and accounting support services in China);
- Advice, Guidance, and Support for Securing Necessary Approvals in China;
- Assistance in China Negotiations;
- China Due Diligence Studies;
- Preliminary and Advanced Business Structuring;
- Investment Project Analysis and Planning;
- Training on China, and Doing Business in China, for Businesses and Institutions Engaging with China or Seeking to Engage with China. (Training Programs are tailored to the specific needs and circumstances of client companies and institutions);
- Preliminary and Advanced Business Plan and Market Plan Development for Securing and Improving IT Business with China;
- Advice and Guidance on Making Adjustments to Current Plans for Projects to make those Projects Attractive to Investment and Financing from Companies and Financial and Investment Institutions from China;
- IT Business and Project Feasibility Assessments;
- Preliminary and Advanced Evaluation, Assessment, and Identification of What Could be Achieved by your IT Company (given your company’s capabilities) (the opportunities present) and (how you could be positioned) from Doing Business with China;
- Review and Assessment of your Company’s Already Planned Projects to Determine if Financing or Investment from China is Possible and Identification of the Probable Terms and Conditions that could be expected;
- Identification of Potential New Business Opportunities and Projects Involving China or Chinese Business that could Attract Investment or Financing from China and identification of the Probable Terms and Conditions that could be expected;
- Evaluation and Assessment of your Company’s or Institution’s Current Business Positioning, Operations and Strategies for IT Business with China (including current Marketing and Market Entry Strategies for China) to Determine if more Effective Approaches are Possible;
- Preliminary and Advanced Evaluation of the Opportunities and Requirements for your IT Business to Succeed in China;
- Consulting Services and Guidance on the Nature of the Opportunities in the IT Technology and IT Services Business in China and what they involve.
Under Certain Conditions, Joint Venture Arrangements May be Possible.
Working with Uniquantum Investment Ltd, GSME can also provide Services, Support, and Assistance to various levels of Government (Federal/National, State/Provincial, Municipal/City and First Nations) for IT Business and Investment Initiatives with China.