September 16 , 2021Bing Guan
China Center forInformation Industry Development (CCID)The Development of China’s Information Technology Industry 
and Future Challenges 
RD/IT/35CONTENT
◆Future challenges in ICT industry◆Development of China’s ICT  industryThe IT Aexpansion negotiation was officially concluded attheend
of2015，andChina began thefirsttariff reduction inJuly 2016 .
AsofSeptember 2021 ,tariffs on308products have been reduced to
zero according toimplementation staging .Alltariffs will bereduced
tozero in2023 .The expansion listincludes 201HS6tariff lines，involving 484
HS8products inChina .China’s  tariff reduction under ITA expansion
03
01
0201
 ICTindustry hasbecome thelargest manufacturing industry inChina
ICT  industry  leads the highest level of tariff reduction.
ICT industry experiences the fastest development 
since China’s entry of  WTO. 
ICTindustry creates 5million jobs forChina atpresent .
Theentry offoreign capital drives thedevelopment ofChina's import andexport .
425.53468.60
369.80 373.19571.50
0.00100.00200.00300.00400.00500.00600.00700.00
2014 2015 2016 2017 2018
Figure 1  Actual FDI amount of China's electronic information industry (USD 100 million)China’s ICTindustry hasaccelerated itsglobal outward investment
Figure 2   China ’s FDI to Asian countries( USD million )0100020003000400050006000700080009000
2013 2014 2015 2016 2017 2018 2019
Cambodia Indonesia Laos  Malaysia Thailand VietnamThetariff reduction under ITAandFTAenhances reginal integration ofproduction
02
 ICTtechnology creating new models ofproduction
➢Alibaba rhinoceros factory, creating new mode with 200small enterprises intaobao .com.
➢Thecooperation canrealize on-demand customization andsmall batch production .
➢Rhinoceros factory canproduce garments forsmall enterprises .
➢Small garment enterprises canfocus oncore businesses such asbrand management .
Rhinoceros manufacture03
 ICT technology speeding up poverty alleviation in China
From：CNNICRural e -commerce ：example of xiaying village
➢OnT aobao platform ,Xiaying village inHubei Province sold local Turquoise andagricultural products .
➢In2019 ,thesales ofthewhole village exceeded 200million yuan .
➢Nowadays, Xiaying village hasexplored thetourism of“T aobao town .
Moonlight in lotus pond in Xiaying village 
04
 ICT  technology fighting COVID -19
MIIT：medical material guarantee and dispatching
platform，showing the real time production and
improving the effectiveness ofmedical material
distribution .Traffic bigdata：grasping thepopulation migration in
keypandemic areas andproviding support forpandemic
control .Pandemic map/fever outpatient map Intelligent robots fighting pandemic .
leopard delivery robotdisinfection robot
05
Fast development of cross -border e -commerce in China
non-tariff barriers （NTM）
rising prices of bulk products
digital tax
1
2
4
3
Future 
challenges
carbon tax 01
 NTM preventing  trade flows of  ICT products
➢In 2020, 152 policy measures affecting foreign investment –an increase of 42 percent. 
➢Ratio of restrictive or regulatory measures over liberalization or facilitation measures : 41 percent
➢Chinese ICT enterprises are facing trade barriers such as export and investment control. 
02
Rising prices of bulk products
➢Since January of2021 ,theprice ofbulk products hasrising fast.
➢Small enterprises arefacing great challenges .
year 2020 2021 2022
petroleum -32.7 41.7 -6.3
Non-fuel primary products 6.7 16.1 -1.9
--food 1.7 13.9 -2.0
--Drinks 3.3 4.4 4.0
--Industrial agricultural 
products-3.4 12.9 -2.7
--Metal 3.5 32.1 -4.5
manufactured goods -3.1 2.0 0.7Table 1 Changes in international commodity prices （dollar，%）
From:IMF . World Outlook.2021.4
03
Impact of digital tax LOGO
Digital economic governance
 Development of digital industry04
 Impact of carbon tax
Environmental protection New tariff
Changes in exports of energy intensive products, per cent
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