Only a few years ago, China was seen as a cheap producer of goods, and an emerging market. Now they have begun to lead rather than follow. China is a major adopter of cloud technology, compounding the advantages of servers for even greater flexibility and performance/price. Just as Kenya is skipping the wired network for faster roll-out of wireless networking, China is skipping much of the “PC-with-a-hard-drive-and-Wintel” revolution and jumping directly to thin clients connected to the cloud. FLOSS, ARM and MIPS are all on their radar and they are not locked in to Wintel’s preferred strategy, paying dearly per unit.
“Strategic Emerging Industries: No longer content with being considered the â€œworldâ€™s factory,â€ Chinese planners have included several preferential tax, fiscal and procurement policies designed to develop seven â€œStrategic Emerging Industriesâ€ (SEIs). Planners hope these industries will become the backbone of Chinaâ€™s economy in the decades ahead, and they have been chosen sectors where Chinese corporations are expected to succeed on a global scale. The seven industries are biotechnology, new energy, highend equipment manufacturing, energy conservation and environmental protection, cleanenergy vehicles, new materials, and next-generation IT. The government is reportedly prepared to spend more than RMB 4 trillion on these industries during the 12th FYP period, with an aim to increase SEIâ€™s contribution from todayâ€™s approximately 5 percent of GDP to 8 percent by 2015 and 15 percent by 2020.”
see China’s 12th Five Year Plan
EMC reports they do most of their R&D in China these days: “The old school idea was to get R&D done in China because it was cheaper, but now you actually get better R&D done there”