I believe the main the country’s leading IT company, ChinaSoft International, has embarked on a joint venture with the nation’s leading mobile phone manufacturer, Huawei.
The agreement between the two companies was signed on the 12th January this year in order to develop and specialise in software outsourcing. ChinaSoft will hold 60% of the joint venture, while Huawei will keep just 40%, so it seems that the driver behind this is ChinaSoft.
Speaking with sys-con.com a spokesperson for ChinaSoft said: “The joint venture in Xi’an is a crucial stage in its Western China strategic plan. ChinaSoft International and Huawei will share the common goal to develop and manage the joint venture and look forward to the bright future.”
What exactly will result from all this is not exactly known. However, since the major company in the partnership is trying to encourage outsourcing this seems to imply both companies are looking at cloud computing as the way forward and not just software development.
If so, I have to agree. Google has managed to grow phenomenally by making use of cloud computing across Europe and North America in particular. So, ChinaSoft and Huawei may feel the same way about the huge Asian market available.
The question is will this new venture take on the likes of Google on its own turf, so to speak? With the way the Chinese economy is growing I wouldn’t be at all surprised.