The Development of the Information and Communications Technology (Ict) Industry in China, 1995-2005

This dissertation, "The Development of the Information and Communications Technology (ICT) Industry in China, 1995-2005" by Sze-ying, Tam, 譚思映, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract of dissertation entitled "The Development of the Information and Communications Technology (ICT) Industry in China, 1995-2005" submitted by Tam Sze Ying for the Degree of Master of Arts (China Development Studies) at The University of Hong Kong in June 2006 Information and communications technology (ICT) is widely believed to be the most powerful tool for boosting the economic growth of a country and enhancing people's living standards. The ICT sector not only promises enticing returns itself, but also promotes efficiency and competitiveness in other sectors. The Silicon Valley of the United States demonstrates a successful case of investing in ICT to become an advanced knowledge-based economy. It sets up a model which many countries would like to follow, especially for developing countries like China and India. As ICT is able to reduce transaction costs and time, in addition to allowing global market connections, China has been eager to utilize this technology to leapfrog into the advanced economies. Among different fields of ICT, the Internet is regarded as the most widespread and influential. In fact, China can benefit from exchanging cultural issues, sharing technology and getting knowledge through this amazing tool. In view of the importance of the Internet, this paper evaluates the levels of Internet development of China in the period 1995-2005. The main focus is on analysing the distribution of Internet users among different regions of China and providing information for policymakers and investors to tap the potentials of such a huge market. It was revealed from the findings that China witnessed a rapid growth in the number of Internet users and now possesses the second largest Internet population, following the United States. This astonishing development was mainly due to the fact that the Chinese government has regarded the Internet as a driving force for economic growth, and hence promoted actively the development of this technology. The findings also showed that the Internet population was much denser in the eastern region of China, such as Guangdong and Jiangsu. The overall share of Internet users of the eastern region was 59.9 percent in 2005, while those of the central and western regions were 23.4 percent and 16.7 percent respectively. These figures indicate a great geographic difference of Internet users, resulting in the problem of "digital divide" which must be overcome before the sector can further develop. Besides, the Internet market of China also faces other challenges such as the criticized censorship policies, lack of ICT professionals and inefficiency of the monopolized telecommunications market. The paper suggests some strategies for policymakers to consider in order to reap the greatest benefits from the sector, as well as reduce the disparity among different regions of China. DOI: 10.5353/th_b3654926 Subjects: Internet - Economic aspects - China Telecommunication - Economic aspects - China Information technology - Economic aspects - China