Like the rest of the world, China is experiencing extreme price drops for LCD TVs, spurring a shipment increase of 32 percent to 3.9 million units in the fourth quarter of 2006, according to iSuppli Corp.

Aggressive pricing, increased consumer interest and commitments from LCD panel makers have prompted television OEMs in China to push the technology, despite declining profit margins. With the strong growth in the global demand for LCD TVs, China's exports of such television are on the rise. However, Chinese manufacturers face challenges in their export activities, including anti-dumping charges, royalty payments and tariffs in certain regions of the world.

The good news is that these are the exact same problems China's domestic companies have dealt with for years with CRTs, and because of this they are not repeating some of the same mistakes they have made in the past and are seeking to avoid making these missteps again.

China's LCD TV market revenue is forecast to grow to $22.6 billion by 2011, expanding at a CAGR of 24.6 percent from $7.5 billion in 2006, according to iSuppli. Total Chinese LCD TV unit shipments—including both domestic and export shipments—will reach 55.4 million units by 2011, achieving a CAGR of 39.8 percent, up from 10.4 million units shipped in 2006.