Venture capitalists are now banking on Internet and digital media as the new fast track investment ramp in China, thanks largely to the success of the Middle Kingdom's national innovation priority achievements in science and technology. With more than 105 million Internet users, and nearly 71 percent of them under the age of 30 years, it is no wonder that Gobi Partners is optimistic about their digital investments into New China.

Lawrence Tse, a senior partner in an interview with me stated that " we (Gobi Ventures) have always been focusing on digital media and we believe China is in the early stages of the digital media evolution."

Gobi views digital media as the convergence of a host of technologies within technology, media and telecommunications (TMT).

This includes portfolio companies like Lingtu, a leading integrated location-based service and digital mapping company, and Digital Media Group, (DMG), a digital out-of-home media company that helps advertisers reach out to China's massive consumer population in an effective and interactive manner.

Tse's venture company along with NTT, DoCoMo and Dentsu have led follow-up rounds of financing for Lingtu and DMG.

Along with other VCs, Gobi Partners maintains a keen interest in the Internet space and envisions a number of niches that are not yet adequately covered by existing portals. Tse believes that there is a "massive pent-up demand for intriquing content and applications after decades of rigid government control which makes the Chinese population particularly open and receptive to novelty because there are not any types of entrenched user behavior or habits."

Make no mistake about it, China is in an enviable position to embrace next generation communication and media platforms. Underpinning this digital media investment position, the municipality of Beijing and the Zhongguancun Technology Zone hosts next week the China International Creative Industry Forum, a high-profile conference focused on building bridges between China's growing digital-content industries-especially electronic gaming and animation-and the outside world.