China’s Ministry of Industry and Information Technology (MIIT) released a five-year plan in December 2017 outlining a roadmap for commercial and technological progress in a broad set of optical technologies. The 63-page document is in Chinese. The following Cignal AI report is based on a professionally translated version of the document and summarizes the section of the plan about the Chinese optical component industry.
The goals and objectives outlined in the plan are exceptionally ambitious and should concern incumbent component vendors. This document outlines strategic rather than rational economic objectives to catalyze market progress in Chinese component companies. Our interpretation is that this will increase the number of non-rational economic actors participating in the component market.
If executed, this plan will greatly increase the level of competition in an already fractured industry. It will also reduce or in some cases eliminate access for western component vendors to the largest market for optical communications components in the world – China.
Electronic copies of the source MIIT document as well as the translated version of the section on optical components are available to clients for download.
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