China has been quite successful in attracting advanced technologies. Advanced electronic ICs, LEDs, and PCB technologies have supported the development of an electronics supplier base. Today, every major international component vendor, including Intel, is establishing advanced capabilities in China. Fiberoptic cables and switching technologies central to development of a telecommunications infrastructure are being provided by US companies like AT&T and Motorola.

Right now, China operates the world's largest wireline and wireless network. At the end of 2002, it had 215 million wireline and 207 million wireless customers. The handset penetration rate in China is barely 15%. Yet the market is growing by more than 4 million subscribers each month.

It's been estimated that Chinese cell-phone production will reach 500 million by 2004/2005. Maturation with low-cost phones (e.g., GSM) has led to IC standardization and commoditization. Meanwhile, cell phones are becoming increasingly similar to PCs. This trend is a huge opportunity for makers of wireless devices—both in China and elsewhere. It also bodes well for the companies that supply those devices.

Following the U.S., China is now the world's second-largest IT-equipment manufacturer. It surpasses Japan and Taiwan. The number of Chinese Internet users grew from only 15,000 in 1995 to 59 million (5% of the country's population) by January 2003. By 2008, 37 million people in China will have broadband connections.