MONEY MATTERS

In a move to boost its domestic Information Technology industry, China has decided to encourage state owned enterprises (SOEs) to develop domestic talent. Indian software firms were on the look out for jobs from the Chinese market but this decision of china has put them on the lure. The Chinese government is ready to invest in the IT sector and has asked them to enhance their abilities to self-innovate. India was on a track to exceed last year’s IT import to China, while last year India imported for $20 billion, this year they have reached the mark of $14 billion just for the first seven months.
Premier Wen Jiabo has told the Indian officials during the first Strategic Economic Dialogue that he hoped Chinese companies would import more IT, pharmaceuticals and farm produce from India. But the Chinese government has made it clear that it will look to limit the involvement of foreign companies. China’s IT industry has grown 30.5%, this year. China’s investment in IT rose by 67.7%, reaching $8.79 billion. Though Chinese IT companies have not reached the height of the Indian IT companies, they are not far behind.

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