China has hired an unprecedented amount of engineers to help build its burgeoning tech industry.
But the country’s slow-growing economy, and the nation’s growing reliance on outsourcing for jobs, have caused a significant gap between the demands of tech giants like Huawei and ZTE, which are building out their own networks and have been investing heavily in building networks, according to people familiar with the matter.
Huawei’s investment in network infrastructure has been growing steadily over the past few years, according a person familiar with its plans.
Huawei and other tech firms are building networks at a rate of roughly 10-12% of the total number of devices in use, according in a report by Bloomberg Intelligence.
ZTE is ramping up its network infrastructure as well, building out a network of more than 500 million mobile devices, according ZTE’s vice president for network operations.
The rapid pace of China’s investments in network technology and infrastructure could prove crucial to the countrys future growth, said Peter Zhang, a China expert at the Brookings Institution.
The rise in Chinese technology firms’ investments could be key to the rapid expansion of the tech sector in the coming years, Zhang said.
China is expected to add more than 1.3 million new jobs in the next three years, or about 20% of its workforce, as the economy grows at a healthy pace, according the People’s Bank of China.
The government has set a target of adding 3.5 million new workers this year.
Zhang said the investment could be crucial to China’s long-term growth.
He said China’s network investment is one of the biggest drivers of economic growth.
China, a country of more then 6 million people, has the world’s second-largest population and the worlds third-largest economy, after the United States.
The countrys economy is expected grow by 5% this year, according data compiled by Bloomberg.