High-tech in China Infographic
The Chinese production shift to high-added value products, which has been taking place for several years, now shows results. China gradually establishes itself as the leading Asian exporter of high-tech goods.
Over the same time (from 2000 to 2014), the Chinese share in the Asian exports of high-tech goods has increased fivefold, reaching 44% in 2014, while low-tech products represented only 28% of the total Chinese production, declining by 13 percentage points.
This shift is based on the Chinese government’s will to make China and its companies become powerful players in the high-tech market.
To foster innovation, the Chinese government has created an investment fund of USD 337 billion dedicated to the creation of start-ups in China. One-third of this amount is intended for the financial start-ups, the “fintech,” to help them to dominate this industry.
In some markets, China already has a dominant position that is hardly contestable. The Chinese giant DJI holds 70% of the market of drones for the general public. According to estimations, this emerging market will be worth USD 12 billion globally by 2025. The current leading position of Chinese companies will probably allow China to keep dominating this industry in a decade.
China is investing heavily in disruptive innovations that require high technological capabilities, such as virtual reality and autonomous cars. Analysts forecast that in the next four years, the global virtual reality market will grow by 1000% and will be worth nearly USD 8.5 billion in China in 2025.
The Chinese market seems better prepared to welcome these innovations than elsewhere. About 75% of Chinese people think that they will “drive” an autonomous car, whereas only 50% of American people are in the same frame of mind. It must be said that the Chinese government is ensuring the successful development of this market. By 2025, autonomous cars are predicted to circulate on the streets of Chinese cities.
High-tech in China Infographic
