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Internet Technology Development Boost China Further

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A perspective look at the countryÐŽ¦s transition in next decade relative to internet technology

Bo Li, School of Technology & Management

Submit to: Mr. Paul Reynolds


Since 1980 ChinaÐŽ¦s economy has grown by more than 9 percent a year. The country now manufactures 75 percent of the worldÐŽ¦s toys, 58 percent of the cloths, and 29 percent of the mobile phones. More than $1 billion in foreign direct investment arrives each week. By 2008 China will be the worldÐŽ¦s third largest exporter, and by the decadeÐŽ¦s end its economy will be larger than that of either France or United Kingdom (Emmanuel, et al., 2004). ChinaÐŽ¦s GDP in 2004 growth by 9.5 percent to ÑžG851,072 million and IT(information technology)ÐŽ¦s contributions account for 25 percent. It is predicted that the IT market will growth by 15.8 percent every year to 2009.

Economists are curious to know how long will ChinaÐŽ¦s strong economy be. When the advantage of low labor costs in China will subside in the future, what will support its fast growing economy? According to China Internet Network Information Center (CNNIC)ÐŽ¦s 2005 report, 94 million internet user and half of them are using broadband connection. China now has 4 internet-based companies listed in NASDAQ. As they reported profit since the SMS business introduced in 2002, many economists think there will be an internet technology boom in China again. IT industries in developed countries now are facing both challenge and opportunity since many mergers and acquisition happened in west countries from Chinese maker. That what will happen in China on internet technology in the next 10 years will affect every international business around the world.

This study begins with the analysis of upcoming internet technologyÐŽXexamining the effect of future internet technology and ChinaÐŽ¦s policy ÐŽXand then move on the analysis of the impact of internet technology on ChinaÐŽ¦s industries in next decade as well as its future contribution to the countryÐŽ¦s stellar growth.

Internet Era Just Begin

Internet will change more dramatically in the next decade than it has during its entire history. We have just seen the beginning of what the Internet can do for use as a revolution in communications and the way business is done (Gates, 2000). Internet application had moved from transaction phase to platform phase at the beginning of this decade. There are some trends will be prevailed.

Ñ"Ю Wireless connection on multi-device

Wireless connection between different devices at high speed is probably the key component that is really going to take the scenarios of empowerment that we have always believed in and make them a reality. From infrared ray through FM to Bluetooth still recently GPRS, 802.11g, wireless technology has become more advanced and more applicable by connecting different devices such as cell phone, computer, Hi-Fi system at high speed. It is talking about the multi-device era where it is the phone, it is the TV set, it is the car, it is the PC, all hose things working together. It is the same sentiment as when people want to make the phone mobilized because only by seating down with a computer can not satisfy the demand of working together. The role of wireless in letting people reach out to information is just at the beginning. Being connected whenever, wherever you are can make the work effectively. These must be devices that will not require people to perform tasks such as configuring and upgrading operating systems and applications, which are annoying and often too intimidating for a lot of people out there.

Ñ"Ю Reliability, Security of Internet

The internet will enable an era of change for Chinese society and Chinese economic development, said Lu Zhicheng (2002), President, Tsinghua Tongfang, China, ÐŽ§but that will depend on credibility, safety and security.ЎЁ Research and development efforts are underway to allow critical applications to operate in the future in a more secure environment than exists today. In the future, authentication protocols will increasingly be supported by technology that authenticates individuals (in the context of their organizational or personal roles) through the use of smart cards, fingerprint readers, voice recognition, retina scans, and so forth. Intrusion detection tools and techniques that can identify coordinated distributed attacks are critically needed, as are better protocols to support traceability. Internet security has generated a new market. Only first half year of 2004, Chinese internet security products sale was ÑžG100 million. Although the battle between the attacker and defender has never stopped and will continue, our internet is more secure than before by using new internet technology.

Ñ"Ю Standardization of High Speed Internet Connection

Fast networking, user interfaces, and computer power are clearly going to make a big difference and will play key roles in enabling future progress. Scientists at the Stanford Linear Accelerator Center used fiber-optic cables to transfer 6.7 gigabytes of dataÐŽXthe equivalent of two DVD movies ÐŽX across 6,800 miles in less than a minute. The cost of such internet connection will decrease and be commercial in next 10 years. High speed internet connection realizes the distance collaboration, distance education and entertainment. Doctors at multiple sites can share and discuss a patient's [heart test results] to diagnose and plan treatment. We have already seen the TV programs on computer and this function will be enhanced in next 10 years.

Effect of Internet Technology in Five Industries

Despite the recent bursting of the technology bubble and the demise of countless e-businesses in China and around the world, the general consensus was one of optimism for the future of the internet in china. E-business is seen as having potential not only in its own right, but also as an enabler of development in other industry sectors, such as education, manufacturing, retailing, and telecom.


Most manufacturers viewed the World Wide Web primarily as a means of advertising and marketing, and as a way to be perceived as a technological leader. Although it has become commonplace to see robust Web sites fro manufacturers, especially those in the information technology field, few manufacturers use the internet in an



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