Global Sources Communications Industry Outlook: China report shows China's communications industry -- including mobile phone, cellular base station and wireless local area network/wide area network (WLAN/WAN) equipment makers --
expects sales to top US$68 billion in 2005 -- up 27 percent from 2004.

The report provides in-depth analysis of China's communications manufacturing industry, including key product sectors, semiconductor demand and supply, and design industry challenges. It is published jointly by Global Sources' Electronic Engineering Times-China (EE Times-China) and Electronics Supply & Manufacturing-China (ESM-China).

Mark A. Saunderson, publisher of EE Times-China and ESM-China, said: "The rapid development of China's communications industry will continue, with sales in 2007 reaching US$103.6 billion."

Highlights of the report:

-- China's mobile phone production will grow annually, on average, by 14 percent until 2007. I n 2005, output will reach 223 million units.

-- Cellular base station sales will reach US$5.4 billion in 2005 -- up 12 percent from 2004 -- due to China's rapid growth of mobile phone subscribers.

-- China's WLAN market will generate sales of US$23.45 million in 2005 -- up 20 percent from 2004 -- due to the spread of broadband access,falling equipment prices and continued popularity of notebook PCs.

Communications market growth drives chip consumption

The report shows that in 2005, China will need US$59 billion worth of integrated circuits (ICs) to meet strong demand from communications equipment makers and other segments of China's electronics and information industry.

Saunderson said: "As local IC production is still limited, 91.9 percent of makers' IC requirements will be imported. This will provide continued market opportunities for international semiconductor vendors."

The telecommunications sector currently accounts for 19.9 percent of China's overall IC demand.

Source: Global Sources

China's exports surged 42.2 percent in January from the same period a year earlier, pushing the country's trade surplus to $6.5 billion for the month, the government said Tuesday.

The sharp rise in exports to $50.8 billion outpaced a 24 percent increase in imports to $44.3 billion from a year ago, the official Xinhua News Agency reported, citing customs statistics.

China has reported trade surpluses for nine consecutive months. It recorded a $30 million trade deficit in January 2004.

Strong export growth pushed the country's full-year trade surplus to a six-year high of $31.98 billion for 2004. The surplus in 2003 was $25.5 billion.

China's exports rose 35.4 percent on-year in 2004, while imports climbed 36 percent.
  
Source: AP