Nowadays IT is one of the seven strategic industries that help China to become a world-class, innovation driven, and high-tech society, the development of which is stimulated by foreign investors and many domestic private players. The application of new technologies, such as Cloud Computing, Big Data, AI and the Internet of Things has experienced impressive growth and the revenue for the IT Services industry in China is expected to increase at an annualized 5.3% over the five years through 2020, to total $180.1 billion. Being the second largest economy in the world China has nearly 1 billion internet users in the mobile industry, and the country also is the number one revenue generator on iOS.
China is the 4th destination for exports from Armenia with a 7.3% of share in the total export trade in 2019. In its reverse trade, China is the 2nd largest import partner with a 13.6% share. Despite the fact that China is an important economic partner for Armenia, we benefit very little from buying value-added products from China and selling them low value-added mined natural resources.
Tech industry as the future of China-Armenia economic cooperation
Digital Silk Road Center, Digital Pomegranate’s new startup project, that will operate in Distrikt suggests a better way to benefit from China-Armenia economic relations by focusing on the tech industry. The facts that many international channels are blocked in China and Chinese IT market is fragmented, make it difficult for Western IT Companies to enter the Chinese market with a software product. Other industries also face many difficulties selling their products and promoting their brands in China because of language and culture barriers, high starting costs and risks, heavy regulations and layers of agents with low transparency.
Digital Silk Road connecting the world with China
In ‘’Digital Silk Road’’ Center high skilled developers from Armenia will create mobile and web apps for the Chinese platforms such as WeChat, AliPay from Alibaba for companies around the world. Having opened its office in Xi’an, the sister city of Gyumri in China , Digital Silk road center will link China with the West creating jobs and exports for people in Gyumri thus tremendously changing the vision of this regional city in Armenia.
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