China's Packaging Machinery Market Research Report - PMMI

14.6 The Electronics Industry
An overview of China’s electronics industry
2000 witnessed an improvement in the international economy after the influence of
the Asian Crisis faded. A favorable external environment has helped China expand
its exportation and attract foreign investment.
As for the internal environment, China is actively speeding up the development of
the IT industry to bring the national economy into the information era. Further, the
policies to help upgrade industries and to open the western territories of China have
also contributed to the healthy growth of electronics industry.
The following features characterize the current development of this industry:
(I) The prominent expansion of scale
1999 saw a prominent expansion of electronics industry, embodied by the soaring
total assets to RMB 469.6 billion, an increase of 18.9% over the last year; the
turnover to RMB 430 billion, an increase of 27.7%; the industrial added value to
RMB 106.2 billion, an increase of 26%; tax to RMB 33 billion, and increase of 39%;
and the average growth rate of 26%.
(II) Fur ther improvement of industrial structure
1. The decreasing percentage of state-owned enterprises and the abrupt increase
of non-state-owned ones.
The former was decreased from 70% in 1998 to 67% in 1999 with a
corresponding change in the output value from 65% to 58%. At the same time,
the rapid growth of the latter is reflected by the following changes: the assets
and output value of joint stock enterprises grew from 16% to 17% and 14%
to17% respectively while those of joint ventures from 33% to 36% and 42%
to 45% respectively, according to the statistics in 1999.
2. Improved industrial structure.
The ration among the three types of structure changed from 36.7:37.3:25.9 to
38.2:35.8:25.9. Of the three types, investment sector with its strong
momentum has becom e an important force to provide incentive to the
electronics industry, its products being 3 percentage points higher than
consumer sector.
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