US software giant IBM Corp said yesterday that China's planned 850-billion yuan healthcare system overhaul will generate at least $1.5 billion in new spending in software, providing great opportunities for technology companies that have taken a beating in the current global economic downturn.

Matt Wang, vice-president of IBM's China Development Lab, said he expected at least 1,000 Chinese hospitals to invest a minimum of $1.5 million each on software and related services in the coming years, encouraged by the government's investment plan.

"The government's involvement in healthcare sector reform creates huge market opportunities because it makes possible a nationwide and unified network that connects together the highly scattered Chinese hospitals," he said during an interview in Beijing.