Chinese high-tech companies are continuing to develop at a growth rate in three digits or even higher despite the current tough economic environment faced by businesses throughout the world.
On the other hand, thousands of export-oriented manufacturers have already fallen victim to the financial crisis that began in the United States.
Firms which offer innovative products or services that meet the demand of the domestic market will continue to survive and even grow stronger during the financial crisis.
The heroes this time are firms that specialize in clean energy and dot-coms which offer new applications, instead of "old" online firms such as Baidu or Alibaba.
The 50 top high-tech companies in China achieved a three-year average revenue growth of 18.7 times, compared with 13.5 times in 2007, according to Deloitte, which released the Deloitte Technology Fast 50 China 2008 report last week.
Globally speaking, IT giants including Motorola and AMD are laying off people to cut costs.
The latest example is that most participants didn't ask for executive rooms as before when they attended an IT forum in Shanghai recently.
These firms included Google, eBay, Intel and Cisco, said a forum organizer who declined to be identified.
Reflecting the strong demand for alternative energy, the proportion of clean technology and new energy businesses in the 50 winning companies this year increased to 20 percent from 8 percent last year, among which was the top winner, Jiangyin Jetion Science & Technology Co.. The proportion of biotech and pharmaceutical firms also increased from 4 percent last year to 12 percent this year, according to Deloitte.
Other top growth firms include online education service provider Beijing 100e, Internet and mobile TV service provider Beijing LeTV Mobile Media & Technology, Zhejiang Yuhui Solar Energy Source and video equipment maker Shenzhen Launch Digital Technology.
Venture capital firms will become more cautious but they will continue to invest in firms with real value, according to Tang Ning, chief executive of China Growth Capital.
In October, the venture capital investment in China reached US$363 million, a 7.1 percent drop from a year ago, according to investment research firm ChinaVenture.
Some firms, however, will boost their revenue in the slowing economy, such as those involved in online education, Tang said.
Beijing 100e, which provides online English learning materials for students, plans to expand its business, according to Chief Executive Wang Mingjun.
"We are considering providing online English learning services to white collars and we hope to issue an IPO soon," Wang said.
The demand for easy and cheap entertainment will be fueled by the tough economic environment and mobile TV, according to Liu Hong, chief executive of LeTV, one of the first profitable online video service providers.
Jetion's production capacity of solar cells and other components, will double in 2008 from a year ago, according to the Jiangyin-based firm.
Beijing Dunhuang Heguang Information Technology, whose revenue grew tenfold in the past year, expected it would continue the growth through its unique business models.
Dunhuang, an e-commerce Website like Alibaba, charges users based on each completed deal. Market leader Alibaba, however, charges users a fixed annual rate, regardless if any deals are completed.
"The tightened liquidity will force people to rethink what is the right business model," said Diane Wang, chief executive of Dunhuang.
Wang also expected to grab market share from Alibaba and other rivals next year.
"The financial tsunami poses no negative impact but rather accelerates their expansion plans," said Patrick Tsang, leader of Deloitte China's TMT (technology, media and telecom) Group.
(Shanghai Daily November 7, 2008)
