China’s ICT sector has grown rapidly because of the support of the Chinese government’s plans and policies. By the end of 2014, there were 630 million internet users and 1.29 billion mobile phone users in China. These numbers demonstrate the growth of the market for the ICT sector. Even though a catch-up process for technical innovation capacity is taking place, the overall high-tech innovation capacity of the Chinese ICT industry is still weak.
The ICT industry covers a wide range of products and services, including telecommunications, hardware, software, and IT services. European SMEs may find opportunities and niche markets in some of these sectors in China. However, because of complicated regulations and market barriers, EU SMEs may also encounter various challenges when entering the Chinese ICT market.
This report, updated in July 2015, highlights a growing number of opportunities for SMEs in China’s ICT sector, particularly in the area of mobile gaming, 5G, the Internet of Things (IoT), and IT outsourcing. Despite these new areas of opportunity, challenges remain, including issues surrounding intellectual property (IP), licensing, and regulation, as well as administrative restrictions.
This report is compiled in partnership with the China-Britain Business Council.