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Compared to the maiden flight of the 10101, the second prototype recorded a longer flight at a higher altitude and faster speed. The highest altitude it reached was 4,660 meters (15,300 feet) and the maximum speed was 253 knots.

Competition is getting fiercer as established automakers roll out more models and startups launch their first ones, as the Chinese government phases out subsidies to spur carmakers to improve product quality and standards. Analysts said withdrawing subsidies may dent sales in the short term but will benefit the industry in the long run as it will force out those over-reliant on financial stimuli. They added that local governments' investment in charging facilities will further foster the sector in China.

Commercial Aircraft Corporation of China (COMAC) holds some cards up its sleeve. Its plane has Western engines and avionics coupled with a new design, it's rolling out a pilot training program and expanding international staff, industry executives say.

Companies did not respond to emailed requests for comments by press time.

Competition will also characterize the world of cloud services in 2012 as the strategic focus shifts from building infrastructure to the creation of application platforms and ecosystems. Here the battle for enterprise platform dominance is just getting underway with established players like IBM, Microsoft, and Oracle facing serious challenges from Amazon, Google, Salesforce.com, and VMware. As evidence of this challenge, IDC expects Amazon Web Services to exceed billion in cloud services business in 2012 with Google’s Enterprise business to follow within 18 months. IDC also expects a merger and acquisition (M&A) feeding frenzy as these companies seek to gain a competitive edge. Look for Microsoft to buy a content/media cloud, like Netflix, to provide a marketplace for its apps and content. Other prime targets for acquisition include Cloud Application/SaaS companies, like Workday, NetSuite, and Taleo.