China’s technology sector is growing despite sanctions and restrictions from the US

China’s enterprise IT market is set to grow by 8.5% a year up to 2026, in part due to ongoing government initiatives that prioritise industrial digitalisation, new research says. The predicted growth will come despite sanctions from the US barring Chinese companies from selling into the US on national security grounds.

Research from GlobalData shows that most of the government investment has come in the form of the expansion of China’s 5G infrastructure and extensive use of digital applications including e-commerce and digital payments. This has helped drive demand and products inside the country, offsetting US sanctions.