From economic view I: positive impacts and negative impacts

As standards have become crucial for economic activities in every corner of the world, we should consider about economic influence about this new standard.

Positive impacts:
Firstly: new standards contain a rich content of the technical knowledge, which is important to boost wireless communication technological progress. For example, Chinese government has put large amount of money to support the development of TD-SCDMA, which influences the development of this industry. Companies are willing to invest more in this technology and more researches are focused in this area.

Second, in the global economy, most international corporations are largely involved in assembling parts and components from various suppliers. In such circumstances, compatibility standards between different parts and components are essential. Different companies and organizations begin to cooperate with each other after China’s implementation of TD-SCDMA. For example, Hong Kong Wireless Development Center and Datang Mobile Communication Equipment Company Ltd announced the full cooperation on the development of TD-SCDMA. A TD-SCDMA Service Development Center is established to assist the cooperation.

Third, TD-SCDMA is a mean for China to catch up the developed countries in wireless communication area. Many developed countries use WCDMA which has been developed and marked maturely. TD-SCDMA is the standard developed by China and it is totally new for developed countries. The new standard can then compensate the gap between China and other countries.

Negative impacts:
There are no guarantees that the standard would be the “right” standard. The effectiveness of “false” standardization is likely to cause the phenomenon known as “cementing the state of technology”.

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