E-Business: China's Influence Will Shape Future Technology
Byline: Steve Pain
China is no longer content with just being the world's pre-eminent manufacturer - it is increasingly active in the development of global technology standards.
Experts at Deloitte predict that China's standards initiatives will shape global competition in the technology, media and telecommunications (TMT) sector for years to come.
They say that China's current status as the leading consumer and producer of many technology products, along with its healthy long-term growth prospects, puts it in a strong position to influence technology standards at home and abroad.
As China's standards become more widely accepted, Chinese firms will have increasing influence in the global technology sector.
Chris Robertson, partner in charge of Technology, Media & Telecommunications at Deloitte in Birmingham, said: 'Technology vendors that misjudge the impact of China's standards revolution could find themselves at a significant disadvantage, with their position in the market increasingly over-taken or encroached upon.
'China is able to use the lure of its massive markets and spectacular growth as leverage in the standards war.
'UK technology and telecommunications companies need to review China's standards initiatives and collaborate, where appropriate, with Chinese companies in standards development.'
According to Deloitte, there are four practical approaches for technology firms to consider in the process of China's technology standards being shaped. They are:
Partner with standard setters.
Compete selectively, focusing on areas where standards are harder to mandate.
Innovate specifically for the Chinese market.
Seed emerging markets to encourage growth and establish early control.
'Firms with a strong base of support among Chinese companies and consumers are in the best position to promote their own standards. Those lacking widespread support would be wise to co-operate instead of competing,' said Mr Robertson.
'Technology companies must carefully monitor China's actions, assess the implications of Chinese standards, and amend their strategies accordingly. Companies that don't may find themselves locked out of the world's largest and fastest growing marketplace, which is increasingly influenced by standards that originate in China.'
From operating systems and software applications, to storage media, wireless communications and satellite positioning, Chinese government agencies and companies are working to shape new technology standards for economic advantage. …