Alcatel Shanghai Bell Joins Zhejiang Netcom's SME Informatization Alliance in Shanghai

Strategic Insights -

Zhejiang Netcom, a subsidiary of China Netcom, has formed a small and medium-sized enterprises (SMEs) informatization alliance with Alcatel Shanghai Bell and ten other companies, including Alibaba and Huawei, to gain a competitive edge in China's small and medium size informatization market. This alliance aims to provide relevant solutions and services to push informatization to small and medium enterprises. SMEs are a major force in the Chinese economy, generating 55.6% of China's GDP and 46.2% of the country's tax revenues, despite nearly 63% lacking their own websites as of June 2004.

Key Takeaways:

  • Alcatel Shanghai Bell has joined Zhejiang Netcom's SME informatization alliance in Shanghai, a move aimed at gaining advantage in China's small and medium size informatization market.
  • The alliance, formed with 11 companies, including Alibaba and Huawei, provides relevant solutions and services to push informatization to small and medium enterprises.
  • SMEs have been a major force in the Chinese economy, generating 55.6% of China's GDP and 46.2% of the country's tax revenues.
  • Despite their economic importance, nearly 63% of SMEs in China did not have their own websites as of June 2004, while only 11.11% had tried to do business online.
  • Small and medium enterprises account for over 95% of coastal Zhejiang province's enterprises and contribute 88% of its total economic growth, according to Ye Rong Bao, Deputy Head of Zhejiang People's Congress.
  • China Telecom formed a similar SME informatization alliance with eight companies in August 2005, including Microsoft, Cisco, HP, Lenovo, ZTE, Digital China, Dianji Technology, and Ufida Software.

Statistics:

  • 55.6% of China's GDP is generated by SMEs.
  • 46.2% of the country's tax revenues come from SMEs.
  • 63% of SMEs in China did not have their own websites as of June 2004.
  • 11.11% of SMEs in China had tried to do business online as of June 2004.
  • Small and medium enterprises account for over 95% of coastal Zhejiang province's enterprises.
  • 88% of Zhejiang province's total economic growth is contributed by SMEs.

Sources:

  • INTERFAX-CHINA, March 20
  • Zhejiang Netcom's official website
  • Nanfang Daily, unnamed article date
  • China Telecom's press release, August 2005