A SPORTS roundtable at the Fortune Global Forum in Beijing on May 15 highlighted China's sports industry potential.

The world is eying China's sports market as the country's 1.3 million population reveal a rising enthusiasm for sports along with increased purchasing power.

"The fitness industry, sports competitions and demonstrations, as well as the production and sales of sporting goods, have all grown very fast, and their growth rates are clearly higher even than the overall economic growth rate," said Liu Peng, head of the State General Administration of Sport.

Liu is echoed by many other participants, most of whom are international sports industry players.

Adam Silver, president of NBA Entertainment and chief operation officer, expressed his strong belief in China's sports market and intention to further co-operate with the Chinese Basketball Association to promote the game.

"There's no doubt that Chinese like NBA games," said Silver, citing a recent survey showing that 300 million Chinese already play basketball.

The survey also showed 40 per cent of the country's youngsters consider basketball their favorite sport.

In with a bounce

China's sports industry started to take off in the 1980s when China charted its course of reform and opening-up. It developed vigorously, with the launching of professional football and basketball leagues.

With a scandal-plagued football league, the number one game in the country, China's sports market nevertheless continued booming with the entry of NBA games, Europe football leagues and Formula One motor racing.

The added economic value derived from the sports industry in Beijing, Shanghai and developed eastern coastal regions, according to Liu Peng, accounts for a fairly big percentage of their GDP, approaching the level of some developed countries.

The NBA's success in China shows that the market is ripe for international competitive sports events. First appearing in China in the 1970s, NBA games are now widely broadcast.

"From Michael Jordan to Yao Ming, NBA has introduced many of its superstars to China's youngsters," said Wang Jiapin, an expert specializing in sports marketing at a Shanghai-based sports consulting firm.

"The young guys who watched Michael Jordan play in the 1990s have become the core fans of basketball," said Wang. "They will be happy to let their children watch the game too. There is no doubt basketball is regarded as one of the most popular games in China."

A survey shows that four out of every five sports stars adored by Chinese children come from the NBA, and 75 per cent of young people aged 15 to 24 are fans of the game.

Silver said that the NBA has many co-operative projects with China. Last year, the league held its pre-season games in China for the first time.

NBA games are broadcast by 15 TV stations including China's giants CCTV5 and STV every week.

The NBA official website launched its Chinese-language version in 2002, reaching a record-high 15 million visitors by 2004.

Although the NBA has made inroads into the Chinese market, Silver expects further market expansion in the coming years.

Sports giant

David Chu, chairman of Shenzhen's Mission Hills Golf Club, said that "On the road to becoming a sports power, China has begun to foster the world's largest sports population."

The website www.china.org.cn reported that a survey covering 432 eight-year-olds in two public schools found that 20 per cent had extra curricular training and 46 per cent registered for special vacation courses.

The annual expenditure per child on physical training was no less than 1,000 yuan (US$120), with some spending as much as 30,000-40,000 yuan (US$3,600- 4,800).

Meanwhile, the three-day Formula One competition in Shanghai last November attracted 260,000 visitors and brought in more than US$300 million for the local service sector, said Yu Zhifei, deputy general manager of Shanghai International Circuit.

Ever more newcomers are trying to take a bite out of the big pie of China's sports market.

America's National Football League is trying to draw more of China's 1.3 billion people into the game, especially young people, despite the fact that for most it is no more than a name.

National Football League (NFL) Commissioner Paul Tagliabue spoke with Chinese sports and education officials during his visit to China to promote the game in China's schools and universities.

"It (American football) is new in China and it will take many years to develop the sport here," Tagliabue told the Shanghai Star. "Our approach is to work with sports officials, education bureaux and football coaches to help people understand the game, play the game and enjoy the game. It is a process of evolution."

He said Beijing had been selected to host the sixth annual NFL Flag Football World Championship, to be held on August 16-21.

The tournament will include teams from Canada, China, Japan, Korea, Mexico, Thailand, the United States, and three teams from Europe.

"Since introducing flag football in China nearly two years ago, there has been an enthusiastic response from youngsters and school administrators to the sport," the commissioner said.

"The selection of Beijing as host of this important international youth event underscores this enthusiasm and will serve as a bridge between cultures from 10 different nations."

NFL flag football is the NFL's core international grassroots programme, involving more than 1 million boys and girls from around the world.

The programme provides youngsters with an opportunity to engage in non-contact, continuous action while learning the basics of the sport. Games consist of five players per side.

Flag football was introduced in China in 2003 when the first flag football league was set up in three of China's biggest cities - Shanghai, Beijing and Guangzhou of Guangdong Province. China's Flag Football League, open to boys and girls aged 8 to 14, has reached more than 84 schools with more than 1,000 players in the three cities.

NFL programmes in the three cities are involved in building teams as well as providing coaches and facilities for the students.

Local sports officials and education bureaux have accepted the sport as a new, healthy and promising game.

"There is no doubt it is a new game. But once the students begin to play it, they will become devoted to it very quickly," said Li Junxiu, deputy director-general of the Shanghai Municipal Education Commission.

"The schools are encouraged to participate in the game," Li told the Shanghai Star.

But as a latecomer to China, compared to the rival National Basketball Association, whose popularity has sky-rocked with its household name star Michael Jordan, and Chinese player Yao Ming playing for the Houston Rockets, the NFL has a long way to go to open the China market.

The NFL made its first Super Bowl game broadcast in China last year while the NBA games often made the headlines of China's newspapers and TV programmes.

"I'm not about splash and drama," said Tagliabue, a former lawyer. "I'm into the long term."