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Digital China calls for central government funds for IT SMEs

By Yi Nuo (China Daily)
Updated: 2009-09-12 14:25

Hong Kong-listed Digital China, part of the Zhongguancun Haidian Science Park (HSP) since 1995, is looking to boost its own capacity for innovation in a bid to increase its competitiveness within the IT industry and ensure it emerges unscathed from the current global fiscal crisis. It is also calling on the central government to support SMEs in the IT sector.

Guo Wei, the company's CEO, said a series of increased efficiency measures, such as offering comprehensive and integrated IT services to businesses, have helped the company maintain positive growth despite the current economic situation.

He said: "These efficiency measures have improved our capability to deal with possible risks in the IT market."

The company has maintained annual sales growth of 22.3 percent since it was launched 14 years ago. As one of the largest provider of integrated IT services, Digital China has established cooperative ties with more than 100 international leading IT producers.

Commenting on these external links, Guo said: "Partnering with the world's leading IT manufacturers enables us to provide small and medium-sized enterprises with high-value products and solutions.

"After our successful move into integrated IT services, we will continue to attach the utmost importance to innovation in order to improve our technological competitiveness within the international IT market."

The company, which was listed on the Hong Kong Stock Exchange in 2001, was also designated as one of the top 20 most influential brands in the HSP in 2008.

Since its entry into the high-end IT market, the company has relentlessly pursued its dual policy of innovations and customer service for over a decade. Guo said the company had also taken full advantages of preferential policies offered by the central government in a bid to boost its business growth.

He said: "For example, the recent move toward encouraging the provision of domestic appliances in rural areas has been of great benefit to us."

Guo also attributed the company's rapid growth to the HSP's authority's supportive policies throughout their tenure. As a result of these policies, the park, with a large number of innovative enterprises, universities and research institutes in its immediate environs, has developed the country's largest regional system for encouraging innovation. Guo expressed his thanks, in part, to the HSP's hard work leading Chinese IT brands, including Lenovo and Baidu, which had originated in the park.

He said: "The park's sound IT development environment has helped us achieve our rapid growth in recent years."

Guo also called for increased financial support from central government for small and medium-sized IT companies in the HSP, in order to help them upgrade their business platforms.

Arguing his point, he said: "Many IT companies in the park have found it hard to raise funds, especially in the current grim economic climate. Increased financial support from the government will help with much-needed upgrades for all of the industries in the park."

Digital China now offers a broad range of IT products, including PCs, servers, storage products, peripherals, network products, mobile office supplies, wireless access devices and software.

In order to cater for the needs of SMEs as well as the consumer market, the company is also committed to providing tailored "fulfillment services" and highly efficient logistics services to this sector.