IT spending in China will post an annual composite growth rate of 18.5 per cent from 2005 to 2009, according market analyst CCW Research.

The upcoming five years will be characterized by the comprehensive deployment of e-government applications,the upgrading of IT infrastructure by large companies, the widespread deployment of information technology by small and medium-sized companies and a battle for market share between foreign and domestic IT vendors, CCW Research said.

In 2003, overall IT spending in China totaled US$30.5 billion, a 11 per cent increase over the previous year, CCW Research said. That figure is expected to increase 15 per cent to $35 billion in 2004, it said.

Hardware spending will account for about US$23 billion of 2004 sales with an annual growth rate of 10 per cent. Software and services will account for US$6.5 billion and US$5.5 billion, respectively, with respective growth rates of 25 per cent and 27 per cent, CCW Research said.

CCW Research is a division of China Computerworld.