China expects to produce 98 million desktop and laptop computers in
2006, mostly for overseas markets, state media reported on Sunday.

Of the output forecast for this year, China aims to export 58
million computers, or 59 percent of the total, the Xinhua news agency
said, citing the Ministry of Information Industry.

However, huge Chinese exports have forced computer makers to cut their prices to remain competitive.

The average export price for a desktop last year stood at $617,
down from $644 at the end of 2004, Xinhua said, citing the ministry.

The Chinese computer industry’s foray overseas is led by the
nation’s largest computer maker Lenovo, which stunned the world when it
bought US icon IBM’s personal computing division last year.