Intel chief urges more IT investment in China

Intel chief Craig Barrett has urged government and business leaders to increase investment in information technology in northeast China, in order to improve the region's competitiveness.

Developing a modern IT infrastructure will improve efficiency and employee productivity, provide access to new markets and promote long-term economic growth, Barrett said in a statement on the company's website.

"Technology use throughout China is growing, and companies that want to compete globally are implementing technology to gain a competitive advantage," Barrett said during his two-day visit to China.

Barrett, who arrived in China two days ago on a routine tour of Asia to meet key customers, said investment in computing and communications infrastructure, government policies, research and development programmes and education would boost economic growth.

Meanwhile, the Chinese Xinhua news agency reported that Intel will invest $39m (€32.23m) in the construction of an R&D center in Shanghai's Waigaoqiao Free Trade Zone.

Barrett's Asia trip occurs with the background of a growing row between Beijing and Washington over a new Chinese data encryption standard for wireless devices, called WAPI, that will go into effect in June.

Intel has already said it will not support the standard and is likely to stop selling its Centrino wireless chip in China from June, although a final decision will be made in May.