Component distributors expect 35% China revenue growth in 2003.

Global Sources Ltd. (Hong Kong, China, www.globalsources.com) announced the results of a survey of mainland Chinas electronic component distributors conducted by Electronic Buyers' News-China (EBN-China, www.ebnchina.com), the company's monthly Chinese electronics publication.

"Our analysis tends to confirm current industry forecasts," said Mark Saunderson, publisher of EBN-China. "Results show that component distributors in China expect to achieve average revenues of $27 million in 2003, up by 35% from $20 million last year. International, Hong Kong and local distributors tend to distribute components to China's high-growth communications and consumer electronics industries. A significant number of Taiwan distributors continue to serve the computer industry, with 57% of respondents saying they do so."

According to China's Ministry of Information Industry, sales of mainland-produced electronics are expected to grow 17% this year to $198 billion. Demand for integrated circuits (ICs) is expected to reach $30 billion in 2003, with imports to account for 95% of that total.

When asked about the greatest challenges faring them in the China marketplace in 2003, international, Taiwan and Hung Kong distributors cited erratic buyer purchasing behavior. Mainland distributors were most concerned with an increasingly competitive marketplace. In countering these challenges, the majority of international distributors plan to develop new supplier alliances, while Taiwan, Hong Kong and mainland distributors are looking to expand their sales network and provide more value-added services.