Last March, Kitty Fok, Managing Director of IDC China, talked about the impact of COVID-19 on China’s ICT Market and its implications on APeJ IT spending. Below are some bullet points:
- The trajectory of COVID-19’s impact on the China ICT market is expected to be similar to that of SARS. After this period, there was a record growth for the industry following recovery;
- A practical indication of recovery and returning confidence post-outbreak is when governments allow (physical) schools to re-open;
- There are sectors hardest-hit by the COVID-19 outbreak in China. This includes food services, tourism and accommodation, wholesale and retail, transportation, and manufacturing;
- ICT spending growth in Asia/Pacific will drop to 1.2% this year as the COVID-19 outbreak continues to impact markets in China, in the region, and the rest of the world;
- Online healthcare, service robots, contactless businesses, and widespread 5G adoption will soon become a part of China’s new normal after the COVID-19 crisis
Alternatively, you can watch the video bellow summarizing five key takeaways from her online presentation.
Developed in March, IDC’s China team came up with different assumptions based on optimistic, probabilistic, and realistic scenarios. These projections described the outbreak development and its impact to production in China and the global supply chain economy.
All in all, the COVID-19 outbreak will trigger major changes in China’s macro environment. This will include the intelligization of the government, decentralization of city clusters, acceleration of DX in healthcare companies, and rise of contactless businesses among others.
If you want to access the recorded version of the entire presentation, you can watch it on-demand here.
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