Everyone recognizes China as a low-cost manufacturer and a huge potential market. But most do not realize China is emerging as a key player in shaping global technology standards. This new Deloitte Research study looks at how China's growing influence on standards could define global competition in the technology, media and telecommunications sector for years to come. From operating systems and software applications to storage media, wireless communications and satellite positioning, Chinese government agencies and companies are looking to break the hold of developed economies on standards and working to shape new technology standards for economic advantage.

Learn more from our press release or read the full report (in English or Chinese) in the PDFs below. A Chinese language overview of the report also is available.

Four basic strategies for companies to adopt
China's growing participation in standards development is no surprise. As the pre-eminent manufacturer of standards-based products, it is also the leading licensee. China's aim is to both reduce the outflow of license fees and earn some intellectual-based revenues of its own. In response to China's emerging technology standards, Deloitte Research proposes four basic strategies foreign technology companies can adopt :

• Partner with standard setters This is often the best strategy when the critical standards are controlled by government or other organizations.  It is also effective in highly regulated industries.
• Compete selectively Companies should consider focusing on a niche market where local standards are weak or hard to enforce.
• Innovate for Chinese markets Create products that fill an unmet need or differentiate themselves by providing superior functionality.
• Invest to seed markets By making strategic, long-term investments in new technologies companies can help these markets develop and influence emerging standards.

Global technology companies must carefully monitor China's actions, assess the implications of Chinese standards and amend their strategies accordingly.  Companies that do not may find themselves locked out of the world's largest and fastest-growing market, or worse, unable to compete in a global marketplace increasingly defined by standards that originate in China.

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Operating through a network of research professionals, senior consulting and accounting practitioners, academics and technology partners, Deloitte Research delivers innovative, practical insights companies can use to improve their overall business performance. Through its in-depth publications, surveys, reports and commentary, Deloitte Research identifies, analyzes and explains the major issues confronting businesses today and shaping tomorrow's marketplace.

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