The case of Chinese mobile phone industry
MNEs and technology transfer in economic development Program name: International business management
Introduction
Recently, the number of multinational enterprises has experienced prosperity in Chinese smartphone markets. As the most profitable sub-sector of the telecommunications industry, mobile phones have become an indispensable tool for modern communication in China. Compared with 2006, in the year of 2007 domestic sales of cell phone experienced a rapid increase by 74%, which is 190 million. No mater the traditional customers’ demand and new mobile phone users, they both make a great contribution in Chinese phone industry. Mobile subscribers in China are now using 330 million smartphones, which is a 150% increase over last year.
The thriving and prosperous of Chinese mobile phone industry could not ignore the entry of foreign direct investment. It means that, with the development of increasing economy and policy, the advantages from Chinese market attracts a large number of foreign direct investments to explore the smartphone industry. Importantly, this emerging industry pushes the technology development of domestic market in China.
The aim of this following report is to bring increasing attention on importance of Chinese Technological Development from Chinese mobile phone industry under the push of multinational companies. Following this introduction, through combining specific features and current situations from Chinese market, it will present a brief set of sound reasons to explain strengths and challenges in this market. Even though it has to been confronted with these difficulties, it has been claim that multinational companies make a great contribution in technology development in
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