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The age gap between US & China will close, and the young users will gain higher disposable income. Combined with China's rapid economic growth, this suggests that the Chinese Internet will catch up with the US Internet in serious applications, with e-commerce as the most lucrative explosive opportunity. Among the e-commerce applications, we are particularly interested in vertical service industries (educational, financial, medical areas) that can leverage the Internet. |
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At the end of the first half of 2009, there were 155 million mobile Internet users. Carriers see mobile Internet as most important, as ARPU for voice services has plateaued. In addition, "shanzhai" cell phones are growing in importance and impact. For example, recently, a "shanzhai" Android phone was announced costing only US $100 with no rate plan subsidies. We firmly believe that mobile devices (iPhone, Android), bandwidth (3G), applications (browser) are creating tipping point. |
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IT Technologies in China are in an unbalanced stage of development. On the one hand, Chinese engineers are plentiful, talented, and lower-cost. Multinationals such as Google and Microsoft, and local companies such as Tencent and Huawei, have benefited from this talent pool. On the other hand, Chinese IT is still behind, with little globalization or advanced IT companies or IP. Cloud Computing may create a "new software/IT" industry in China which does not exist before due to piracy. |
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