China's government policies in areas of broadband and optical communications segments, coupled with the establishment of the Optical Access (FTTx) Industry Alliance at year-end 2008, have accelerated the completion of China's last-mile optical fiber network deployment. With the massive deployment of 3G base stations and optical fiber infrastructure, the Chinese optical communications industry has grown rapidly. However, the majority of Chinese broadband subscribers still use ADSL technology due to the fact that the development of FTTx, especially FTTH, still faces several hurdles, such as lack of killer applications to meet demand of most Chinese subscribers and higher deployment costs; so far, FTTx subscribers are mainly enterprise users. Owing to the lucrative domestic market and China's government protection over domestic companies, Chinese large-scale equipment suppliers such as Huawei, ZTE, and FiberHome are gaining their market presence. Furthermore, benefited by low labor and operating costs, key optical component suppliers also see strong growth. This report outlines China's national development policies in the Chinese optical communications industry and analyzes Chinese optical communications market and industry development trends, as well as China's global presence in the global optical communications industry.