China needs to capitalize on information revolution, World Bank

01 May '07

3 min read

The report also says the domestic ICT industry needs more innovation so that it moves up the value chain and beyond production of low-end products and applications. Currently, software exports account for just 1-2 percent of China's total IT industry exports – reflecting China's comparative strength in IT manufacturing and weakness in software development. Furthermore, only 16 percent of teachers in China have ICT training, resulting in a major shortage of skilled ICT workers. 'Brain drain' further exacerbates this situation.

According to the report, China also stands to benefit from expanding into e-government as online applications could make government functions more service-oriented, efficient and transparent. Rural areas in particular can benefit from online information services.

Fostering e-business can boost productivity, increase technological innovation and enhance international competitiveness of Chinese enterprises. A 2004 Ministry of Commerce survey of 838 firms found that 58 percent of those that had participated in e-commerce increased their number of supplier contacts, while 70 percent increased their number of client contacts.

“Given the cross-cutting nature of ICT, government decisions about ICT can also be seen as decisions on the course of the economy as a whole” said Mohsen Khalil, Director of the World Bank Group's Global ICT Department.

“The issues affecting China's ICT policies and strategies are similar to those faced in other sectors. The rapid pace of technology development just means that ICT issues are being addressed before other problems, and that the effects of ICT development will be felt throughout the entire economy.”

World Bank

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