Asian rivals will suffer if China's technology sector keeps current momentum, credit rating agency says

Rapid growth in mainland China’s technology sector could damage the prospects of competing firms in other Asian countries and hamstring their expansion, according to Standard and Poor’s.

In a report published by Taiwan Ratings Corp, a Taipei-based subsidiary of S&P, the firm said that the further growth of Chinese technology firms would "increase pricing pressure [on] established competitors in Asia".

"We believe China's enormous IT market, favourable government policies, and advancing technology capability will continue to support the expansion of China's technology sector," said Taiwan Ratings credit analyst Raymond Hsu.

Hsu identified mobile devices, LCD displays, and TV component manufacturing as key sectors where Chinese firms could dominate other Asian companies.

Chinese high-tech manufacturers were once minority players in the domestic market, which was ruled by companies from outside mainland China such as Taiwan's Foxconn, which reportedly scrapped plans this week to make a large investment in a factory in Indonesia. 

During his annual work report for 2015, Chinese premier Li Keqiang vowed to pursue a "Made in China 2025" strategy, similar to efforts taken by Germany in 2012 to revamp its domestic manufacturing industry.