RFID has arrived in China in an unprecedented manner: In-Stat forecasts that over 100 million tags shipped in 2005, and more than 2.9 billion tags will be shipped by 2009.

Major RFID usage will be first on human ID, and then on product ID. The issuance of an RFID tag inlaid resident ID card by the Ministry of Public Security to over 1.3 billion people starting in 2004, is one of the biggest RFID projects in the world. Beginning in 2008, In-Stat sees RFID tags used for articles exceeding those used for resident ID cards, making the retail industry the biggest consumer of tags, with about 1 billion in 2009. Logistics and supply chain are the second biggest area, with about 400 million tags in 2009.

Problems obstructing the universal adoption of tags include:

? Prices are still relatively expensive, ranging from a low of around US$0.15 to a high of over US$200.

? RFID standards?incompatible standards are obstacles for an open supply chain that crosses industries and territories. Standards are still being worked on.

Currently in China, the government is the overriding force behind RFID adoption. When tag prices depreciate enough to substitute updating bar codes, the adoption of RFID will be driven primarily by Chinese entrepreneurs and supply-chain participants.

Like the mobile telephony industry?s Y-O-Y revenue growth exceeding 20% most of the last two decades, the RFID industry looks to follow the same maturity pattern and enjoy a lengthy sustained growth.