China's It Industry To Compare The Advantages Of The Status Quo And Development Studies

As a newly developed industry, Information and Technology industry spreadedover the whold world with a extremely fast speed. IT industry will promote all thenation's economic development, as well as pull the other related industries. That'swhy all the countries in the world attach importance to IT industry.IT industry in china has its revealed comparative advantage according to theanalysis result. We do have certain competition power because our labor cost is low.However, taking the productivity into account, which is very important in thecomparative advantage theory, we don't have any advantage compared to othercountries as it was thought originally. After entering WTO, we gave lots of promise incuting custom, which benefit a lot for import and do good to introducing foreignadvanced technology. Technology is the core part of informaton products, butunfortunately, what we do in this area is not good enough and still in the low end ofthe industry chain, especially in the field of technology standard and intellectualproperty. Otherwise, domestic brands can not compete with international brands bothinside and outside China.In contrast, India, which is also a developing country, did an amazing job in ITindustry. The reasons can be found in language, labour value, research anddevelopment and related service work. Talking about sevice, the case that Lenovobought PC from IBM indicated that we are still focusing on producing andmanufacturing, while others have already move on.There are different opinions about which way to choose to develop our ITindustry. Based on what we have right now, we should continue to take advantage oflower labour cost, meanwhile raise up the productivity and strength the innovationcapability. In addition, our government and other related institutions have to makepolicies and laws to protect and promote the industry, with positive attitude andmeasures.