IT vendors brace for tougher times as economy loses steam

IT vendors in China are starting to feel the pinch from the economic slowdown as sales slacken in Zhongguancun, the technology hub in the country.

Leon Lee, sales director of Beijing Ding Gu Real Estate Development, told China Daily yesterday that over five percent of 3,000 venders in Dinghao, the largest IT shopping mall in Zhongguancun run by Lee's company, have decided not to re-rent next year. The number was about one percent last year.

"The market was heavily impacted as many domestic companies have cancelled or postponed their purchasing plan due to a gloomy forecast," said Lee, adding that the company plans to reduce the rent by five to 10 percent to retain counters and restore the market confidence.