China Passes U.S., World on Tech Exports
China became the world’s top exporter of tech devices last year, passing the U.S. for the first time, the Organization for Economic Co-operation & Development (OECD) said Mon. China exported about $180 billion in laptop computers, mobile handsets and other communications devices in 2004, an OECD report said, catching the U.S., which exported $149 billion in tech devices, the 2nd most in the world. Many industry experts weren’t surprised at the development, seeing it as the culmination of a steady trend that several said helps both countries.
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China is likely going to be the top tech exporter for 2005, said the OECD, but the group said the “hard proof” would come almost a year from now. In 2003, the U.S. was the leader in tech exports, with $137 billion shipped, followed by China with $123 billion, the OECD said. The report showed a steady gain in world export market share by Asian countries, as the U.S. and the E.U.-15 have lost some of theirs. OECD said companies like Lenovo, which “long dominated the Chinese market,” have come into greater worldwide prominence this year.
China used to import U.S. and European chips and components much more heavily, the report said, but is now turning to suppliers in Japan, Taipei, S. Korea and Malaysia, the OECD said. “China itself is also manufacturing and exporting more electronic components than ever before, with these now forming China’s second-largest export item, after computers and related equipment,” it said.
The figures aren’t surprising and don’t tell the whole story, according to industry players who spoke with Communications Daily. Lawyer Scott Harris, the first FCC International Bureau Chief from 1994-1996, said the trend is no cause for U.S. concern. “I don’t view it as a zero sum game,” he told us. He said it’s likely that most of the exports are coming from “U.S. companies in Asian countries,” and “if anything, the kind of manufacturing done overseas will increase American consumption” by making the devices more affordable, which lead to increased productivity and more American jobs.
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Meanwhile, China’s RFID market is emerging unevenly at best, according to data published by ABI Research Mon. Calling the international RFID market “diverse,” ABI said it’s developing at different speeds according to technology type and is particularly subject to uncertainty around possible standards.
ABI said China’s low-frequency (LF) RFID is now mature and has seen widespread deployment in “low-end markets” like college campuses, Internet cafes and access control applications. High-frequency (HF) standards, however compete for market share in China, and the smaller of the 2, ISO15693, is poised for expansive growth, ABI said. The uncertainty in that sector will be compounded by the lack of any UHF RFID standard, the group said, and the unlikelihood that one will emerge in 2006.