The report, "Changing China," details how China's standards initiatives will shape global competition in the technology, media and telecommunications (TMT sector) for years to come.

China's current position as the leading consumer and producer of many technology products - along with its healthy long-term growth prospects - puts it in a strong position to influence standards in both its own and global markets.

As China's standards become more widely accepted, Chinese firms will increasingly direct the global technology sector.

"China is able to use the lure of its massive markets and spectacular growth as leverage in the standards war. Global technology and telecommunications companies need to review China's standards initiatives and collaborate, where appropriate, with Chinese companies in standards development," says Charles Yen, TMT National Leader for Deloitte in China.

In the report, Deloitte identified three practical strategies for China to go about promoting its unique technology standards:

Chinese government agencies and companies are undertaking all of the above strategies. "China's big push into standards is not without risk. Its effort will be most effective when its standards initiatives align with market forces, international standards, and the interests of multi-national coalitions," said Mr. Yen.

"Technology vendors that misjudge the impact of China's standards revolution could find themselves at a significant disadvantage, with their position in the market increasingly over-taken or encroached upon."

Practically there are four strategies for technology firms to consider as China's technology standards are being shaped:

"Firms with a strong base of support among Chinese companies and consumers are in the best position to promote their own standards. Those lacking widespread support would be wise to co-operate instead of competing," continued Mr. Yen.

From operating systems and software applications, to storage media, wireless communications and satellite positioning, Chinese government agencies and companies are working to shape new technology standards for economic advantage.

Deloitte expects Chinese manufacturers to begin by building critical mass of support at home, then exporting their technologies to emerging markets such as Southeast Asia and the Middle East.

"Technology companies must carefully monitor China's actions, assess the implications of Chinese standards, and amend their strategies accordingly," added Mr. Yen.

"Companies that don't may find themselves locked out of the world's largest and fastest growing marketplace, which is increasingly defined by standards that originate in China."

Examples highlighting China's impact on standards include:

Technology / Operating systems: