China's Telecommunications Industry Foreign Direct Investment In Strategic Research

During the Tenth Five-year Plan, the government endeavor to implement the strategy of"Going Global"in real earnest. We shall encourage overseas investment where China has comparative advantages so that we can participate in international competition and cooperation in a broader and deeper magnitude. Also we shall integrate the strategies of "Bringing Home" and "Going Global" and make them complementary, which will enable us to make better use of both international and domestic marketplaces and resources to serve China's modernization drive. Under the background, Chinese telecoms corporations have done their best to expand overseas markets.In recent years, Chinese telecoms companies have been playing an important role and eager to establishing competitive advantage in the global telecommunication market. Top Chinese telecoms equipment maker Huawei Technologies and ZTE Corp., have been using their high-quality products and low-cost advantage to expand abroad aggressively since 1996, scoring major deals in less-developed markets like the Middle East, Africa and Eastern Europe. Shenzhen-based Huawei has also gained successes in Western Europe in recent years, announcing major sales and tie-ups with such major names as Dutch carriers KPN Telecom and Britain's BT and Vodafone. In order to get a footing in the fiercely competitive international telecommunication industry, the Chinese telecoms corporations should establish their own competitive advantages by implementing proper strategy such as brand globalize, research and development, strategic alliance, core product and location option strategy.