It seems like our last article regarding China was years ago, when in fact it was only last May that we published The Red Marketplace detailing the incredible technology opportunity developing there. China has gone a long way since then, coming a step closer to the World Trade Organization when the US House of Representatives voted to normalize trade relations. This week, China further develops its high-tech market with the nation’s first broadband Internet connections.
State-Run Broadband
Starting in 17 major Chinese cities, a fully fiber-optic system of cables is making its way to consumers. The company at the heart of the development in Internet technology is none other than China Netcom. China Netcom was created by the central government to slowly encourage their potentially limitless telecommunications market in mid-1999. Part of the reason for founding China Netcom was the very creation of this fiber optic network.
Powerful Broadband, Powerful Company
The 40Gbit/Second networking technology stretches across some 6,000 miles and is one of the first of such magnitude in the world. By introducing such technology, China Netcom hopes to become internationally competitive. However, this broadband is not entirely “in house.” Some fifty million dollars came from none other than United States investors who constantly stare at the staggering size of their potential profit. But regardless of the source or reasons for the network, those fiber optic cables are at the heart of China Netcom’s strategy to go public between 2002 and 2005.
Potential Advances
High bandwidth uses aren’t anything that our tech savvy readers can’t figure out for themselves, but China Netcom is still excited about them. Streaming multimedia, live public broadcasting, and a general improvement of Internet access is where it all will ultimately lead its user base. While in America online broadcasting companies like Pseudo are closing up shop, the potential to reach the 90-100 million Chinese who will slowly gain access to this network might prove to be an immeasurable opportunity.
United States Security
Hold on. Let’s step back a moment and keep some perspective. One of the over-riding issues behind the slow acceptance by the US Congress to normalizing US trade relations with China has been security. As such, any technology development is closely scrutinized by American officials who want to see capitalistic development, but somehow achieving that without allowing China to militaristically improve.
China Netcom is very much a state service, regardless of any American backing. Indeed, they must receive approval through the “Ministry of Information” to go ahead with any development, such as offering the IP service CNC launched in September of last year. Presumably, it leaves them open to orders coming the from the state, who might wish to use the network for military activities.