IDC: China’s 12th Five-Year Plan Will Benefit the PC Market and Create Additional Boost for Rural Markets 

BEIJING, CHINA – April 5, 2011 – The 12th Five-Year Plan (2011-2015) for China's Economic and Social Development was officially published on March 16th, 2011. The Five-Year Plan, the so-called development blueprint for China, stated that information technologies are one of the keys for development within the next five years. An International Data Corporation (IDC) analysis shows that the 12th Five-Year Plan will especially benefit the PC market by accelerating purchases in rural areas.

Kitty Fok, vice president, Greater China Research for IDC Asia/Pacific, said, "The fact that the government outlines information technology into its strategic emerging industries demonstrates it is strategically important to the national economy."

Fiona Wu, research manager, Computing Systems Research for IDC China points out that several factors, including the construction of the next-generation Internet, the movement of home appliances to the countryside, the government's increasing input on information technology, and education development in rural areas, are expect to drive faster growth in the PC market.

Some of the most important points in terms of IT spending during the next Five-Year Plan are:

Promotion of broadband and home appliances going to the countryside helps spur PC growth in rural markets: For the information technology industry's development over the next five-years, the government stresses the promotion of next-generation facilities, technologies, and applications in cities as well as in rural areas. It emphasizes the importance of next-generation broadband and faster development of it in the rural markets. Meanwhile, China's decision to boost domestic consumption allows it to continue to promote home appliances in the countryside. These policies are expected to provide favorable support for the expansion of PC the market in rural areas.

Promotion of E-government and public cultural service system provides opportunities for IT spending: The gradual promotion of E-government has become an important part of the 12th Five-Year Plan. The focus of E-government is shifting from city level to county level and is playing an important role in bringing rural and urban areas closer. Meanwhile, the 12th Five-Year Plan proposes to continue to expand broadcast television and libraries, as well as digital services, in rural areas. With these projects underway, local government IT purchases will be an important focal point for growth.

Government efforts to increase education levels in rural areas expected to strengthen IT purchases: Greater attention will be given to the education industry throughout the time period of the 12th Five-Year Plan. The fiscal budget in this sector expects to account for 4% of the total GDP. Investment will mainly be focused on the poor, remote rural areas in order to lessen the education gap. PC purchases in the education sector, especially in less developed areas, are therefore expected to increase. IDC predicts that PC purchases in this sector will reach 5.1 million units in 2011.

Healthcare informatization projects will lead to more purchases in the medical industry in 2011: In the medical care sector, the 12th Five-Year Plan emphasizes putting more resources toward improving the rural healthcare system by building a three-tier health service network, including county hospitals, township hospitals, and village health centers. In cities, more resources will be put into community hospitals. IDC predicts that PC purchases in the medical sector could reach 748,000 units in 2011.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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