Taiwan, Korea, and Japan were always recognized for their innovation, quality, and market dominance… while China limped along behind them, making plastic parts that broke. While it’s been a steep ascent for the mainland Chinese electronics manufacturers, it’s not been a very graceful one… but those cheap Chinese electronics that everyone jokes about may become a thing of the past pretty soon, if all goes according to plan. A slow-burning global recession, coupled with some interspersed political instabilities – and even a little help from Mother Nature (most recently in the form of Morakot) — has brought Taiwan to its knees, and kept everyone else quite busy with their own problems. China, on the other hand, has been distributing and redistributing assets in a whirlwind financial stimulus plan of action that undoubtedly makes President Obama seethe with envy. The CPC does things its own way, and it often does those things with ruthless efficiency… eventually, everyone gets with the program, and things fall into place. This is the basic impetus behind the rise of China’s technology industry, and if you aren’t paying attention to the news, then you will be paying money for their goods… while scratching your head wondering why all this Made In China stuff is suddenly so expensive?

Here then, is a little sneak-peek into the early stages of development in Hangzhou, China. The somewhat self-obsessed tourist city is currently listed as the CPC’s top choice for establishing the domestic tech think tank, and it’s already been called home by the fearsome Alibaba for some time now. While hushed questions and surreptitious meetings surrounding the e-commerce giant’s loosening stranglehold on the Chinese B2B market are floating around, the government is happily pumping money into the business, and no punches are being pulled as the tech market is fed and nurtured into a juggernaut milestone in the timeline of China’s rise to power.

Scary stuff, eh? Well, it’s not as bad as it sounds, to be honest. This is still China. Things are not run with the ultra-smooth efficiency of the Japanese firms, and certainly without the creative spark of American tech companies. It will take time for China to get comfortable with its new identity, and in the meantime… this spells opportunity for you, the savvy wholesaler! Time to learn how to say 你好 (ni hao!) and make some friends in China, pronto!

In a three-part series, I’ll cover some of the basics of today’s Chinese tech market from the vantage point of the 2009 Hangzhou Electronics and Information Expo, and what this means to those who are looking for some hot new items that may be of interest to consumers at home and abroad. I’ll be presenting the news here on the pages of TopTenWholesale, and your comments are surely welcome. There are some exciting developments in the works, and all of this is made even more exciting by the fact that China is still trying to get a handle on the delicate art of innovation, which means the companies that are getting lots of generous helpings of seed money from the CPC… are dying to figure out what it takes to make their new creations fly in a world that has already been up to its eyeballs in electronics for the past 30 years. So far, it’s been a lot of ugly high-volume push-and-shove strategies that ignore the consumer’s desire for functionality… and most recently the blatantly overindulgent endorsement of Google China ex-CEO-turned-superhero Kai-Fu Lee… but if you take the time to read between the lines of marketing hype, you’ll see that today’s clumsy and awkward China is a country with a tremendous amount of unexplored human capital. This dormant period won’t last long, as the continued development of the economy and industry will undoubtedly expose and reveal some shining stars amongst a population that leads the pack by a mile.

Hmmm… you might want to make that a kilometer.