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Article: China + WTO + Technology
Friday, April 6, 2001
China WTO entry could give techs an edge


LYDIA ZAJC in Beijing



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Mainland and foreign technology firms are hoping China's acceptance into the World Trade Organisation (WTO) will give them an edge when it comes to expanding their horizons both in China and abroad.
Tech executives interviewed at Comdex China 2001 are looking ahead to the time that China will become a member of the trade group. Talks to hammer out details - including ways that China will open up its industries to wider foreign competition - have been slowly progressing and a deal could be signed later this year.

Mainland giant Great Wall Technology, which makes computers, printers, monitors and network equipment, could expand its horizons and improve on its already strong market share, said manager of computer research and development He Xin.

"After China joins WTO, I think it's a good chance for Great Wall to sell our computers to other countries," said Mr He on Friday.

Mr He, speaking at his company's booth at Comdex China 2001 in Beijing, said the company's PCs could make inroads in South Asian markets. The company, which is listed on the Hong Kong stock exchange, sold about one million computers at home last year and many more pieces of other equipment on top of that, he said.

Great Wall, which already works and shares building space with IBM in Shenzhen, does not anticipate too many problems with increased competition from its partner or other foreign companies, Mr He said, amid the blare of music and noise at the electronics show.

Instead, a strong rivalry between firms could mean a drop in price for PC parts. "Maybe, some parts will be cheaper and we can make our computers more cheaply," he said.

Great Wall could also see increased demand for its PCs at home as well as abroad. "Maybe, small companies will die and it's a good chance for Great Wall to have more presence in the market," Mr He said.

Roland Andersson, senior vice-president of worldwide sales at processor-maker National Semiconductor who was visiting Comdex China from California, also said China's WTO membership would be a good thing. National Semiconductor has already partnered with mainland companies such as big computer-maker Legend.

On the other hand, Eric Brewer, founder of network software maker Inktomi from California, is not convinced the WTO-related changes will help his smaller, five-year-old company break into the Chinese market. Inktomi has about 1,000 staff members, and has installed seven in China in the past year.

Mr Brewer said after his keynote speech on Friday that Inktomi was attempting to sell more of its products in China partly because of the slowdown in US economic growth. "China will be less affected by the global economy than Japan or Europe," Mr Brewer said.

However, he believes that China will remain largely self-sufficient when it comes to making and selling electronics, despite the talk of an increased international presence.