The report, which notes there are numerous opportunities for U.S. companies to capitalize by the expected growth of e-commerce and Internet use, examined the IT markets in a dozen Asian countries, looking most closely at Hong Kong, Taiwan and South Korea.
Deregulation of telecommunications markets and development of the Internet and telecommunications infrastructure across Asia are helping to drive down user costs and boost Internet use and electronic commerce, according to the report.
Many U.S. companies view China as the biggest prize. This is why U.S. companies pushed so hard for congressional passage this year of legislation granting China with permanent normal trade relations status. Supporters argued that the measure was necessary for the United States to enjoy any benefits from the market-access agreement it negotiated with China on its entrance into the World Trade Organization. The deal includes key concessions in the telecommunications and IT sectors. For example, it requires China to sign on to the Information Technology Agreement, which calls for the staged elimination of tariffs on information technology products such as computers.
The report estimates that China's appetite for information technology hardware, software and services is expected to reach nearly US$14 billion this year and triple by 2004. Despite this expected growth, the report notes that China lacks a nationwide electronic payment system for online purchases, which has slowed the development of e-commerce for consumers and businesses.
Connie Correll, a spokeswoman for the Information Technology Industry Council, an industry group made up of such companies as IBM, Apple and Cisco Systems, said her group has spent considerable time focusing on China "to better understand what the market's like and the opportunities are like and how our companies can benefit from it."
The report focused most closely on the efforts of Hong Kong, Taiwan and South Korea to bring their economies into the digital age and notes that they offer particularly good opportunities for U.S. companies. Wireless technologies are already advanced and widespread in all three countries and Internet use is "developing rapidly," the report said.
All three countries are "intent on moving to the forefront of the information age. Each of them is actively promoting the development of an advanced information infrastructure," the study found. "In short, these markets offer tremendous market opportunities for the world-class products and services from U.S. information technology firms."
