This turbulence in the Chinese tech market is caused due to the ongoing global economic uncertainty, which has reduced demand for exports and the domestic investments.

Eight of 10 large IT vendors in China recorded decreased revenue growth in the first half of 2012.

However, the next year looks brighter as the growth forecast for 2013 is 11 percent and this expected growth is largely due to the stimulus provided by the Chinese government, which will give significant boost to high-tech (cloud services to SMBs).

Findings of the report 'China Tech Market Outlook: 2012 To 2013' indicate that China's US$105 billion of annual technology spending ranks third in the world after the US and Japan but the per-capita IT spending in China is only four percent of Japan's and three percent of the US's.

This difference highlights the long-term potential in the country and the opportunities for tech vendors to tap this lucrative market.