China's technology companies are gaining ground on their foreign rivals in terms of size and efficiency and are making the move from low price to high price product segments, according to a survey by McKinsey & Co and Beijing-based Tsinghua University. The survey, which covered around 39,000 companies in China across a broad range of tech sectors, found that improving processes mean firms no longer rely on cheap labor for a competitive edge, the Wall Street Journal reported. Among tech companies generating at least US$1.25 billion per year in revenues, those in the private sector posted an average of US$53,700 in revenue per worker in 2005, up from US$28,800 in 2001. Foreign tech firms operating in China averaged US$56,000 per worker in 2005, down from US$63,900 in 2001. Total revenues generated by Chinese tech companies hit US$700 billion in 2005, up from US$250 billion in 2001, and their share of export sales rose to 43% from 32%.
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