Since China's political transformation in 1978, the government has introduced market-oriented reforms and decentra liz ed economic decision-making allowing for a vast increase in Chinese industry output. The result has been an onset of economic growth lead by increased foreign investment, and fueled by a rise in consumer spending. The growth of China's economy can be seen in urban and coastal areas and is spreading to more rural areas of the country. With its recent wealth, China has built a sound infrastructure for both foreign and domestic industries, developed laws to promote new businesses and improved educational programs nationwide.

Perhaps the biggest economic incentive to attract software companies to China came in June 2000 when the China State Council issued the "18th File Policy on the Encouragement of Software and Integrated Circuit Industry." This was the first step taken by the Chinese government to launch their national campaign to support and promote the entire IT industry.

Since the 18th file has been issued, there have been a number of other developments to foster the economic and industrial growth of the country. Among such as their accession to the WTO, an emerging middle class, laws encouraging foreign investment, nation-wide programs to support education and more. Read more about the recent trends and predictions in the following sections:

Read more about the recent trends and predictions in the following sections:

• Trends
• Predictions