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Analysis: China's electronics and information industry's FAI investment to grow
BEIJING, Feb 09, 2010 (Xinhua via COMTEX) --
As the global economic environment
improves, the growth rate of China's fixed asset investments (FAI) in
the electronics and information industry is expected to surpass that
of 2009, according to the Ministry of Industry and Information Technol
ogy (MIIT).
China's electronics and information industry faces both favorab
le and unfavorable factors in 2010.
Recovery of the international IT industry will help China's ele
ctronics and information industry. Worldwide company IT spending is ex
pected to top 3.3 trillion US dollars in 2010, according to Gartner, t
he information technology research and advisory company.
China will continue its vigorous fiscal and monetary policies i
n 2010. The 600 billion yuan investment from the central government th
is year will help attracting investment of about 2 trillion yuan from
the entire country, according to the MIIT.
The Chinese government will continue implementing policies to e
ncourage private capital investment in 2010. Investment in the electro
nics and information industry mainly comes from private capital, of wh
ich over 70 percent is self-financing.
New hot spots in electronics and information technology will ad
vance the development of this industry. The telecommunications industr
y will see continued large investment due to the establishment of 3G n
etworks, increased investment in broadband networks, and the fast deve
lopment of the mobile terminals market.
The recovery of the domestic automobile industry will boost the
demand for electronic auto products. The LED and LCD sector remains a
hot spot.
Thanks to the popularity of the low-carbon economy, there has b
een and continues to be substantial investment in the new-energy indus
try around the world, and the industry has a bright long-term future.
The Internet of Things combines the infrastructure with IT faci
lities, providing more space for the development of the electronics an
d information industry.
However, the RMB will face further pressure for revaluation in
2010. If and when it takes place, it will inevitably affect the growth
of exports in the electronics and information industry.
The rise of raw materials prices and the price plunge of electr
onic products will hit follow-up investment in this industry. Prices o
f personal computers dropped more than 20 percent in 2009, and prices
of servers fell 15 percent. The average rate of profit of the whole el
ectronic machines manufacturing sector was less than 3 percent in this
period. (Edited by Zheng Qingyi)
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