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Purpose

The purpose of this paper is to offer a point of view on the challenges China faces competing in a twenty‐first century software industry.

Design/methodology/approach

The approach taken was desk research and conversations with other academics and industry experts.

Findings

The paper suggests that China needs to overcome weaknesses in managerial and technical skills and focus on international markets where it is positive strengths.

Practical implications

India provides some important and practical lessons for China's emerging software industry including those Chinese firms looking to increase their export revenues and presence around the globe.

Originality/value

This paper provides insight into the issues and challenges faced by the Chinese software industry looking to expand within a global economy. The paper may also prove useful to those researchers interested in emerging economies.

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