| half of 2009 by the international financial crisis, | | | | foreign investment declined. From January to May, |
| China's electronic information industry trend is | | | | the electronic information industry for more than |
| clearly downward. Recently, as the household | | | | 5 million yuan investment in fixed assets |
| appliances to the countryside, 3G construction, | | | | investment in the project is completed 167.57 |
| expansion of domestic demand show the effect | | | | billion yuan, up 17.3% year on year growth fell 7.5 |
| of policies and industry of the positive changes in | | | | percentage points. From the industry perspective, |
| the growing and began to stabilize and to the | | | | home audio visual sector investment fell 31.1 |
| good sign. However, the decline in exports by a | | | | percent, electronic components sector investment |
| big margin, there is volatility in some industries and | | | | fell 7.8%, of which semiconductor integrated |
| areas of repeated phenomenon, the basis for | | | | circuits and discrete devices decreased by 39.1% |
| industry as a whole does not rebound strong, still | | | | and 14.2%, 17.6% in optoelectronics industry |
| need to pay close attention to the changing | | | | growth; communications equipment and computer |
| situation and to take positive measures to ensure | | | | industries rose by 39.2 %, 19.1%. From the |
| the healthy development of the industry. | | | | enterprise perspective, foreign invested |
| Operating characteristics of the economy | | | | enterprises to invest in growth to decline from |
| Production of a continuous recovery in product | | | | the first quarter, decreased by 16.8% over the |
| growth increased surface; economic efficiency | | | | previous 5 months expanded 13.4 percent decline. |
| continued to decline, decline gradually narrowing; | | | | (Vii) to reverse the declining trend in the eastern |
| export trend is clearly downward, the overall | | | | region, central and western regions grew rapidly. |
| impact on the industry to further expand; show | | | | In June, the eastern regional sales value increased |
| the effectiveness of policies, domestic market | | | | by 1.6%, reversing the decline in the first 5 |
| growth is more obvious; software business | | | | months of momentum. Among them, Shanghai |
| revenues are steady down, the tendency of a | | | | grew by 7%, reversing a May decline ( 8.8%) of |
| service. | | | | the momentum; Jiangsu growth of 12.9%, an |
| (A) the production of a continuous recovery in | | | | increase of 1.3 percentage points and up; |
| product growth surface increased. Since March, | | | | Shandong growth of 19.4%, an increase of 3.2 |
| the above scale industrial added value of electronic | | | | percent expansion the previous month; Beijing, |
| information manufacturing industry to gradually | | | | Tianjin, Guangdong, Zhejiang and Fujian were |
| reverse the declining trend in growth of 6.5% in | | | | down 3% 25%. In June, central and western |
| the month in June, an increase of more than in | | | | regional sales value rose 24.2%, 18.2%. |
| April, May were increased by 5.4, or 2.2 percent, | | | | The future situation and the main products |
| the cumulative increase in the first 6 months of | | | | development forecast |
| industrial values fell 0.6%. Gradual return to | | | | From an international point of view, the export |
| growth in some key products, in June, focusing on | | | | situation are still not optimistic; from home, the |
| monitoring of 27 products, 11 product output | | | | domestic market is gradually warmed up again; |
| shows positive growth in May more than two | | | | with some leading indicators of view, the next |
| products. Program controlled switches which | | | | industrial development is not optimistic. |
| output increased 25.2%, reversing two months of | | | | From an international point of view, the export |
| negative growth in the previous situation; mobile | | | | situation is still not optimistic. According to IDC and |
| phones declined by 2.9%, a decline of more than | | | | other international markets advisory body to |
| in April, May narrowed by 6.4 and 1.5 percentage | | | | investigate the first quarter, worldwide mobile |
| points; micro computers, monitors grew 38.2%, | | | | phone shipments down 15%, color TV shipments |
| 16.2 %, an increase of more than in May | | | | dropped 6 percent, the computer unit shipments |
| increased by 20.1, 11.4 percentage points; color | | | | declined 7%, IC revenues declined 30% annual IT |
| TV up 3.8% over the May rate of increase fell | | | | market is expected to decline up more than 3%, |
| 11.1 percentage points; integrated circuits, digital | | | | mobile phone, color TV, computers, integrated |
| cameras continue to negative growth ( 13.5% and | | | | circuits, etc. The main products shipments were |
| 14.1%), decrease respectively, compared with | | | | down 5% 20%. Since the end of 2008, the EU |
| May to expand 2.5, 5 percentage points. | | | | introduced in the color TV sets, set top boxes, |
| (B) the economic efficiency continued to decline, | | | | external power supply and other six areas of eco |
| decline gradually narrowing. From January to May, | | | | design directive issued a proposed energy |
| more than the size of electronic information | | | | efficiency equivalent to the domestic level, the |
| industry realized main business income 1.6853 | | | | stringent requirements of China's exports of |
| trillion yuan, down 8.5%, decrease compared with | | | | electronic products to create new barriers to |
| January February narrowed a decrease of 7.5 | | | | trade. |
| percentage points; profit of 38.5 billion yuan, down | | | | At home, the domestic market is gradually |
| 41%, narrower than the January February drop | | | | warmed up again. Countries to expand domestic |
| 44.7 percentage points. Communications | | | | demand and promoting economic development |
| equipment industry realized profits of 13.9 billion, | | | | policy effects continue to appear, the State |
| an increase of 35.1% of e information 11 major | | | | Council officially released this year, third generation |
| industry profits are the only growth industries; | | | | mobile communications license of the year is |
| electronic devices is the only loss (78 billion) | | | | expected to more than 280 billion yuan |
| industry, where integrated circuit industry, a loss | | | | investment in the communications industry, |
| of 19.4 billion, a loss of 11.9 billion electronic | | | | especially in the second quarter, markedly |
| vacuum devices; computers, audio visual | | | | accelerated the process after the network |
| equipment, electronic components industry profit | | | | construction, will boost communication equipment |
| decreased 30%. | | | | industry. Home appliances to the countryside |
| (Iii) export trend is clearly downward, the overall | | | | policy, continuous improvement, implementation of |
| impact on the industry to expand. As the | | | | products and geographic scope, increasingly |
| international market dried up, 1 June exports of | | | | stimulate the growth of consumption in rural |
| electronic information products 188.9 billion U.S. | | | | household appliances. Triple play faster, telecom |
| dollars, down 22.9%, including electronic | | | | operators throughout the year the number of |
| components, the device industry, exports | | | | customized mobile Internet will be more than one |
| decreased by 37.8%, 23.3%, raw materials for | | | | million notebook units to the computer industry to |
| processing trade exports dropped by 36.3%, | | | | bring new opportunities. However, the current |
| 22%, Guangdong, Jiangsu and other provinces and | | | | policy of expanding domestic demand can not be |
| cities in nine coastal dropped 7% 36%. The decline | | | | completely as the promotion of long term market |
| in exports to the industry wide sales of the side | | | | mechanisms, but also industrial core of the |
| effects become more prominent, the first 6 | | | | foundation is weak, key technologies and |
| months of export delivery value of any decline in | | | | components controlled by others, low level |
| sales volume dropped by 7.4 percentage points, is | | | | redundant construction, and other deep seated |
| 1.77 times its total decline of more than in May | | | | problems will remain in a long time constraints |
| has further expanded 0.34 percentage points. | | | | industrial development, the macro changes in the |
| (D) show the effectiveness of policies, the | | | | environment are also is the impact of industry, |
| domestic market growth more evident. From | | | | traditional advantages, requiring co ordination to |
| January to June, more than the size of the | | | | take measures to maintain a stable industrial |
| domestic electronic information industry output | | | | structure adjustment and development, expanding |
| growth of 8.7%, of which 15% in the second | | | | domestic demand and stable to promote industrial |
| quarter, compared with the first quarter growth | | | | exports, and many a balanced and healthy |
| rate increased by 10 percentage points. 3G | | | | development. |
| investment in the telecommunications industry, | | | | With some leading indicators, the next industrial |
| driven by the impact of the first half of | | | | development is still not optimistic. First, imports |
| telecommunications equipment manufacturing | | | | continued to decline, 1 June of electronic |
| industry increased 7.6% in domestic sales, including | | | | information products imports fell 27.3%, in |
| switching equipment industry increased 35.7%. | | | | particular, electronic components, electronic |
| Home appliances to the countryside and the trade | | | | components, electronic materials and other basic |
| in policies to stimulate consumption of home | | | | industries decreased by 40.1%, 21.8%, 33.7%, will |
| appliances market, 1 June home audio visual | | | | affect the exports of the next machine. Second, |
| industry, domestic production rose 15.1%, of | | | | home audio visual, electronics and other industries |
| which 33.2% increase in the month in June, an | | | | invest in decline, especially in integrated circuits, |
| increase of more than in April, May, respectively | | | | semiconductor discrete devices, printed circuit |
| increased 17.6, 10.7 points. At present, the | | | | boards and other basic industries investment |
| domestic components prices gradually picked up, | | | | decreased by 39.1%, 14.2%, 14.4%, will affect |
| but the machine prices continue to decline. | | | | the industry for sustained development. Third, the |
| (E) software revenue declined largely, services | | | | market has yet to resume in June of electronic |
| trend to accelerate. From January to June, the | | | | information hundred orders for nearly half of the |
| software industry was 427.02 billion yuan | | | | companies are still negative growth, Zhongguancun |
| revenue, an increase of 22.7% down year on | | | | electronics market sentiment index in May fell |
| year increase of 7.7 percentage points. One | | | | more than 5%. Taken together, the first half of |
| month in June increased 20.8%, compared with | | | | the electronic information industry downward |
| May down 1.6 percentage points. Obvious trend of | | | | trend likely to continue into the third quarter, but |
| software as a service, software, technical | | | | the decline will be somewhat narrowed, predicted |
| services increased by 33.4%, of which software | | | | that the annual revenue growth rate of the |
| outsourcing services revenue increased as much | | | | manufacturing sector 10% of the scheduled |
| as 87.7%. From the key provinces and cities of | | | | beginning of the year will fall to about 5% of |
| view, growth of 31.7% in Jiangsu Province, | | | | electronic information products Overall exports will |
| Shanghai increased by 22.1%, 20.8% growth in | | | | continue to be a negative growth in the software |
| Guangdong Province, Beijing increased 16.2%. | | | | industry revenue growth remained at around |
| (Vi) investment in fixed assets slowed down, | | | | 20%. |