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Chinese Tech Firms Are Challenging Market Leaders



chinese techChina, a county remembers for its popular gadgets, in telecommunication equipment industry worldwide. The country owns technology products that have been providing best advantages in the world. Surprisingly, now the Chinese companies are setting trends for telecom, mobile devices and online services. They are called as the challenging market leaders. Maintaining their name as a global competitor, they are expanding their marketing campaigns overseas with the help of international sports and celebrities stars. Still Chinese companies are facing the alibi that their products are not as of high-quality and reliable like others. It is also supposed that China gives unfair advantages through subsidies and cheap financing.

But, other than these all accusation China’s technology sector is attaining a mass of expertise, talent and financial power that will straighten the power structure of the global technology industry in the coming years. According to the Colin Light, the renowned partner at PricewaterhouseCoopers “Traditionally, Chinese companies were fast followers, but we are starting to see true innovation”. The overall rise in the telecommunication equipment industry is due to the growing investment in research and development. The new innovations are on their way in the industry. U.S.-based Battelle Memorial Institute has revealed its study research in last December and said that the Research and Development spending in China will likely reach $284 billion this year, up 22% from 2012. This indicates that China will exceed Europe in terms of their R&D spending by 2018 and exceed the U.S. by 2022.

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The 2nd largest telecommunications equipment supplier by revenue Huawei Technologies Co., their annual R&D expenditures rose fourteen fold in a decade to $5.46 billion in 2013 from $389 million in 2003. Mr. Zhou executive of Huawei’s wireless-equipment business said that “At that time, Huawei was not at the same level as Western companies, We were like students. But in the past decade, Huawei overtook Western rivals such as Nokia Corp. and Alcatel-Lucent SA in the telecom-gear market. Part of its success stemmed from Huawei engineers’ creative ways to upgrade wireless networks using software instead of a costly method of replacing all hardware components”. Now its R&D department employs more than 10,000 engineers with computer-science degrees. Now they are already working on the technology for 5th generation networks while the world has stepped into the 4th generation network use.

Same like above areas, China is also moving up the technological curve in classy areas like mobile processor chips. Still the American competitors like Qualcomm Inc. and Nvidia Corp. are far ahead, but Chinese two companies Fuzhou Rockchip Electronics Co. and All winner Technology Co. are increasing making their presence in the market for chips used in smartphones and tablets. The government is also announcing the big spending fund for making investment in microchip industry. If we go to the consumer products side few Chinese brands are beholder of them. Like in the case of personal computer Lenovo Group Ltd. overtook Hewlett-Packard Co. as the world’s largest PC maker by units sold. Also Lenovo now ranked third in smartphone sales globally after Samsung Electronics Co. and Apple Inc., according to research firm Gartner.



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