China's Information Security Market

China's information security market is very much into the introduction stage, with perimeter based defenses acting as the main security solutions purchased there :

"Statistics shows that the size of China information security market arrived at RMB 1080 million Yuan in Q2 2006, 21.35% higher than the same period of last year, and 6.93% more than Q1. In Q2 2006, sales revenue of firewall products was RMB 474 million Yuan, and anti-virus software is RMB 305 million Yuan. Figure2 demonstrates different security products market shares. Figure3 and Figure 4 list major vendors of firewall software and anti-virus software, respectively."

It's perhaps the perfect timing for you to find reliable channel partners and position yourself on the local market that's about to attract even more government attention with the ongoing networking of China, thus a more foreign-business-friendly security market than it is today. Among the most recent, and free of course, research on the security market in China I often find myself coming back to is Yan Liu's thesis on the current and future market trends. From an investor's or analyst's point of view, you may also find The Global State of Information Security in 2006 a very informative and rich on visual materials survey.