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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 155

China Business Intelligence No. 155

Samsung Economic Research Institute Beijing Office

Apr. 21, 2010

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Highlights:

I. Economy

China is proceeding with the convergence of the three major networks of broadcasting, communications, and the Internet. As the convergence proceeds, demand for Internet TVs is likely to increase. The Internet TV is forecast to become a major product of audiovisual market. As global IT leaders enter the Internet TV market, the competition will become fiercer. For the Internet TV to develop, the problem of content supply should first be resolved. Internet TVs provide a new growth engine to TV manufacturers. In order to secure a competitive edge, TV manufacturers need to focus on developing content and technology platforms for Internet TVs. They also have to secure the capability to develop Internet-related technology as well as display technology.

II. Industry

Despite the US' s imposition of punitive tariff on tires imported from China , global tire manufacturers are still increasing their investment in the Chinese tire market. They are expanding their market share in China to secure cost competitiveness and meet a growing demand. It is expected that competition between global tire companies and local ones will intensify in the future.

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