China's GDP will be up to US$ 18 trillion in 2020, according to a newly released report by IDC.
China's annual GDP growth rate is predicted to reach more than 7.2% during 2013-2020.
As per the "Decision of the CPC Central Committee on Several Important Issues of Comprehensively Deepening Reform" the Chinese government will take measures to reform major fields.
These measures will ensure that by 2020 a scientific, standard and operation-effective institutional system can be formed for the nation. An effective institutional system will give direction to economic, political, cultural, society, ecological and national defense fields in China.
"The Decision lays a favourable market foundation for China's economic growth in the future, and with the help of the second reform, China's ICT market will embrace boundless business opportunities in 2020," said Kitty Fok, managing director of IDC China.
Development of urbanization
China's development of urbanisation will be impacted by several factors such as policies designed to improve urbanisation development systems and mechanisms, as well as relaxing the one-child policy.
The size of China's IT and telecom service markets will both exceed US $ 300 billion by 2020. The accumulative ICT market size will amount to US $ 3.8 trillion during 2013-2020.
By 2020, ICT vendors will face changes in economic environment, technical trends, ecosystem and user demands.
Lianfeng Wu, associate vice president, Vertical Industry Research & Consulting, IDC China advises ICT vendors to learn about the general trend in 2020 and creation of core competence in order to adapt to the four changes.
The consumption in China will account for 60% of GDP, the service industry will account for 65% of GDP, and the urbanization rate will reach 60% by 2020.
More than half IT asset of over 50% Chinese companies will be in the third-party software defined data center by the same time.