Chinese telecommunications on the threshold of convergence: Contexts, possibilities, and limitations of forging a domestic demand-based growth model

  • Authors:

  • Yu Hong;FrançOis Bar;Zheng An

  • Affiliations:

  • Annenberg School for Communication & Journalism, University of Southern California, 3502 W Way, Los Angeles, CA 90089, USA;Annenberg School for Communication & Journalism, University of Southern California, 3502 W Way, Los Angeles, CA 90089, USA;Annenberg School for Communication & Journalism, University of Southern California, 3502 W Way, Los Angeles, CA 90089, USA

  • Venue:
  • Telecommunications Policy
  • Year:
  • 2012

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Abstract

Offering a historical analysis of the interconnections between China's telecom policies and industrial development over the past three decades, this paper examines what has recently changed since the promulgation of a domestic-based economic growth model. It argues that the ambitious 3G network buildup underpins the state's broader industrial policy to build Chinese competencies in telecommunications manufacturing-through the creation and leveraging of domestic demand. Some progress has been achieved in expanding market share and in re-organizing the supply chain across the network equipment, handset, and wireless applications markets, but these policies have yet to fully transform China's position in global competition.