New Advantages for China’s Industry 2.0 • Cheap labors at both medium and high end Cost of R&D Marketing cost • A fine industrial chain • A vast hinterland Hardware with some technology components: Cost down by 50%-60%! An age of technological breakthroughs A process greatly facilitated by Apple smart phones Many new possibilities A great opportunity for industry development in China!

China’s High-Tech Industry: Opportunities & Challenges (Part 3) Page 12 Page 14