World's
largest foreign reserves with $1.2 trillion in reserves, most of
it in dollar-backed assets, China plans to launch the world's
largest investment fund.
The
second largest internet user base with 137 million users at the
end of 2006. China is expected to overtake the United States
to have the world's largest Internet population eventually.
World's
largest Mobile user population with 500 million mobile users and the
market is growing explosively, adding 19 million new mobile
connections every three months, according to industry forecaster.
China
continued to maintain its position as the number one most attractive
FDI destination in the world in 2005, becoming world's most
attractive FDI destination for four consecutive years; with FDI
exceeded US$72.4 billion in 2005.
China
has 1.6 million young engineers, more than any other country.
According to Duke Report, China produced nearly 650 thousand
engineering related graduates in 2004. 351 thousands are with
bachelor degree.
In
2005, all 251 tax items related to IT products adopted zero duty.
This will allow China software outsourcing considerably cheaper
comparing to India.
Tougher
Penalties for Intellectual Property Rights (IPR) comparing to most
Western European Countries, on Dec. 23, 2004, China has lowered the
threshold for punishable offenses
to USD 6,000 from USD 12,000-24,000 and has increased prison
sentences from three to seven years.
Investors favor China over India for its market size, access to
export markets, government incentives, favorable cost structure,
most importantly advanced transportation, telecommunications
infrastructure and macroeconomic climate.
Another
Important Factor to Consider is that Outsourcing
IT to China brings more opportunities in the fast-growing Chinese
market.
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