Personal computers (PCs) are making enormous gains in China in manufacturing technology and overall use. As a result, the nation's PC sales were expected to be among the world's largest and fastest growing in 1998.

China sold 3.2 million PCs in 1997 and was projected to sell more than 4 million in 1998. Following a slow start in the early 1990s, China's PC market swelled significantly in the past two years. Annual sales growth has been over 50% since 1995. Two of China's largest cities, Beijing and Shanghai, lead the country in PC penetration.

A report by a Chinese market research company, HuiCong (Beijing, China), predicts China's PC market will continue to grow at more than 40% annually during 1998-99, expanding the total market to 8.3 million units by 2000. The report adds China's PC market will also maintain its momentum and continue to grow as the 21st century begins.

Chinese PC makers dominate the nation's market (see table) with more than a 60% share. Domestic PCs are widely accepted by Chinese consumers for their reasonable cost and serviceable performance. In recent years, most Chinese PC makers started gathering momentum to develop new products capable of competing internationally.

Experts report that China's domestic PC industry has kept pace with global progress in research and development, applications, and marketing. They add that Chinese companies are leading in many market sectors by offering new concepts or applications for consumers.

As a result, a balanced market network is taking shape in China. Sales centers are expanding from large, often coastal cities, such as Beijing, Shanghai, and Guangzhou, to more inland cities like Wuhan, Xi'an, and Chendu.

China's growing PC sector is also assisted by development of the nation's software industry. China's software market was expected to reach more than Y (Yuan) 30 billion (U.S. $3.61 billion) in 1998. This was expected to act as a major catalyst, further increasing PC sales in China.