The good and bad of doing business in China for IT companies

Two Australian IT companies are increasing their Chinese presence – for very different reasons.

Two Australian IT companies are increasing their Chinese presence – for very different reasons.

Communications support company CommScope Solutions will shut its Brisbane cabling manufacturing plant, with 105 jobs set to go between now and next March.

The move is part of a company-wide move by US-based CommScope Inc to rationalise its global operations and consolidate manufacturing to Suzhou in China. Manufacturing operations in England, Scotland and the Czech Republic have also been closed.

CommScope Solutions Australian general manager Philip Cotton told The Australian that the high Australian dollar has played a role in the closure.

Meanwhile, Australian software company Altium has started a program to legitimise use of its products in China. In a recent investor presentation, the company estimated there were 400,000 users of its software in China, but just 1200 had licences.

Altium’s software programs help link all aspects of electronic product design and production into a single system.

The company is now working with the Chinese Government’s intellectual property bureau with a goal of converting 20% of the pirate users to legitimate users.

 

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