In the year 2007 $4.96 billion will be spent around the globe on RFID and out of this $2.7 billion will be spent by East Asia and further out of $2.7 billion China will be spending $ 1.9 billion for the technology which amounts to seventy percent of the spending of East Asia. If we believe IDTechEx then China is the world's largest market for RFID by value. All this is being attributed to the 2008 Olympics where RFID is being implemented for the benefit of all. This is being regarded as the largest RFID project in the world since $1.65 billion are being spent on contactless national identification cards for the event.

If China is a such a big consumer of RFID then why can't it become a manufacturing hub for this technology too since this country has the ability to pass on the cost benefits to the consumers and this could be something positive for RFID technology which has been facing the cost roadblock with regards to its implementation.

Since RFID is the fastest growing economy in the world it can certainly play an important role in developing and driving application of RFID technology and that too at fraction of the cost. Now a question emerges why should China become a manufacturing hub for RFID? Firstly China is one of the largest and cost effective manufacturing hub in the world, secondly the low and high frequency market is quite mature in China, thirdly Beijing, Shanghai and Pearl River Delta have emerged as the major areas for development of RFID technology in the country, fourthly the retail sector in China has been implementing RFID in a big fashion, another reason is that the Ministry of Science and Technology in China has already drawn out major RFID programmes and lastly more than three fourth of the RFID firms in China are involved in low frequency and high frequency band which makes me feel that in the coming years we will witness low cost implementation of RFID all due to the efforts of China.