China’s Electronics and Information Industry to Encourage Domestic Demand in the Next Five Years

China's Electronics and Information Industry said it is critical that, in the coming five years, the industry alter the development pattern and encourage domestic demand-driven growth. This may involve attracting strategically important emerging industries, accelerating innovations and expanding the domestic market, with the aim of optimizing the industry structure, gaining core strength, improving the industry’s competitiveness to achieve sustainable growth.

Recently, China’s policy environment has also changed in a manner that will ease the transformation of the industry’s development pattern. On February 3, 2010, President Hu Jintao delivered a speech urging the country to transform the economic development pattern, continually advance economic development, enhance the Chinese economy’s international competitiveness and risk resistance capabilities, in order to ensure the high quality development as well as expanding capabilities for further development. China’s central economic work conference in December 2009 also stressed that transformation of the development pattern will be a focus of China’s economic development in 2010. The Industry and Information Technology Minister Li Yizhong stated that the ministry’s work will center on "structure adjustment” and "pattern transformation” in 2010.

As for the local governments, during a period of economy and industry pattern transformation, they will have to take initiatives, closely follow the central government’s strategic guidelines, study the industry’s development rules and analyze the industry’s development trends to create a new "four-in-one” development pattern which combines initiative development, routine development, transposition development and oriented development.

The global financial crisis has fundamentally changed the pattern of global economic development and consumption, as well as the climate for China’s economic and industry development. In face of the ongoing crisis, various countries are engaged in a new round of technology competition to bring creative innovations and industry-revitalizing methods to the world. For China, this presents both opportunities and challenges. During the post-crisis period, China is prepared to see international demand linger for a long time at a level far lower than that before the crisis due to changes in consumption patterns of developed countries. China will have no choice but to advance balanced sustainable development of its economy, adjusting for an innovation-powered and domestic demand-driven growth pattern. Regarding the new global economic reality, the central government decided to focus on developing strategically important emerging industries, as well as possessing core and key technologies in areas thought to be primed for breakthroughs. It is also in line with the state’s strategic goal of building an innovation-oriented country as depicted in the medium and long term planning for science and technology development.

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