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5 White Paper on the Business Environment in China
launched on the other two carriers in China, hasn’t made its sonal computers, electric bicycles, gas stoves, pressure cookers,
way to China Mobile yet.”29 DVD players and more.35
China Mobile’s use of TD-SCDMA was mandated by the As of September 2011, a total of 189 million home
Ministry of Industry and Information Technology in 2009, appliances were reported to have been sold with an estimated
presumably to ensure that China’s indigenous standard would value of 429.9 billion yuan.36Roughly a year later, those gures
succeed regardless of foreign competition. were reported by Xinhua as reaching “283 million units of
home appliances worth 681.1 billion yuan.”37
In late 2010, China Mobile began a Ministry of Industry
and Information Technology-approved trial of its 4G network Another e ort to increase domestic consumption, a trade-
in Beijing, Shanghai, Hangzhou, Nanjing, Guangzhou, Shen- in program o ering 10 percent subsidies for individuals and
zhen and Xiamen.30 companies recycling old goods (many of the same items cov-
ered by the “appliances to the countryside” program) and pur-
By 2013, 4G infrastructure was under construction. In chasing replacements, was initiated in June 2009 as a trial in
August of that year it was reported that “Shenzhen-based nine municipalities and provinces (Beijing, Shanghai, Tian-
Huawei and crosstown rival ZTE have obtained about 25 jin, Fuzhou, Changsha, Jiangsu, Zhejiang, Shandong and
percent each” of China Mobile’s estimated $3 billion e ort Guangdong)38 and was expanded to 28 cities and provinces in
to upgrade its network. Foreign rms, meanwhile, accounted June 2010.39 Less than a month after the trial began in 2009,
for an additional third of the overall value of the contracts the program was amended to allow individual consumers a
awarded.31 maximum of 5 such appliances with subsidy, while companies
were limited to 50.40 In total, this program is expected to gen-
“ e rst wave of 4G investments that began in 2010 in erate an additional 150 billion yuan (approximately $22 bil-
Japan and Korea favored Ericsson and NSN, while the second lion) in domestic spending between participating individual
in the United States went largely to Ericsson and Alcatel- consumers and companies.38 A Ministry of Commerce report
Lucent. Huawei won a chunk of Europe’s 4G contracts [in in March 2011indicated that the program had stimulated 152
2012],” writes Reuters.31 billion yuan in sales of 40.27 million items, with an addi-
tional 41.72 million units having been traded in.39
e infrastructure upgrade was suggested by some to be
a precondition for China Mobile to o er Apple’s popular iP- Notable Policy Activity
hone handsets to its customers;31 Less than six months later
“Chinese regulators awarded 4G wireless licenses to China Import Tari s on Electronic Goods
Mobile Ltd, China Unicom Hong Kong Ltd and China Tele- Ten years after the PRC’s accession into the WTO, import
com Corp Ltd, removing the nal stumbling block to a deal
that industry observers had long expected.”32 tari s on some electronic products (including personal
computers and digital cameras) were cut by the Ministry of
According to market research rm Forrester, “China Mo- Finance from 20 percent to 10 percent.41
bile could gain 17 million new iPhone activations in 2014
alone,” while it is also expected to be a “much-needed boost “ e change will permit distributors and dealers to make
for Apple in a country where it’s trailing rivals, even though their prices similar to those overseas, removing an incentive
China is its second-largest market after the U.S.”32 e deal for consumers to buy their digital devices elsewhere,” a China
could reportedly generate as much as “$3 billion in revenue Daily-quoted analyst observed at the time, referring to the
[for Apple] in 2014.”26 common practice of a uent Mainland consumers traveling
to Hong Kong or other nations to purchase such goods—in
Meanwhile, “China Telecom [picked] Alcatel-Lucent to particular personal computers and mobile phones such as the
supply its next-generation 4G technology for a nationwide now-ubiquitous iPad.41
trial of high-speed mobile broadband.”33
Potential Policy Gains
In March 2014, according to Wei Zaisheng, the nance
director for ZTE, the Chinese state-owned equipment maker, Continued Adoption of and Participation in International
as told to the Financial Times, that from 300,000 4G base Standards
stations, China is slated “to have as many as 1 million” by the
end of the year.44 While domestic innovation and “strong support” for the
fruits thereof make sense in many contexts, straying from
e “Appliances to the Countryside” program subsidizes internationally-developed and -adopted standards can be a
appliance and consumer electronics manufacturers to sell signi cant cost to companies who have to redesign technical
goods worth a projected 920 billion yuan to customers in 14
rural provinces at discount over four years. e program began
with the sales of televisions, refrigerators, washing machines
and mobile phones receiving subsidies valued at 13 percent
of the purchase price,34 and later expanded to include per-
140
launched on the other two carriers in China, hasn’t made its sonal computers, electric bicycles, gas stoves, pressure cookers,
way to China Mobile yet.”29 DVD players and more.35
China Mobile’s use of TD-SCDMA was mandated by the As of September 2011, a total of 189 million home
Ministry of Industry and Information Technology in 2009, appliances were reported to have been sold with an estimated
presumably to ensure that China’s indigenous standard would value of 429.9 billion yuan.36Roughly a year later, those gures
succeed regardless of foreign competition. were reported by Xinhua as reaching “283 million units of
home appliances worth 681.1 billion yuan.”37
In late 2010, China Mobile began a Ministry of Industry
and Information Technology-approved trial of its 4G network Another e ort to increase domestic consumption, a trade-
in Beijing, Shanghai, Hangzhou, Nanjing, Guangzhou, Shen- in program o ering 10 percent subsidies for individuals and
zhen and Xiamen.30 companies recycling old goods (many of the same items cov-
ered by the “appliances to the countryside” program) and pur-
By 2013, 4G infrastructure was under construction. In chasing replacements, was initiated in June 2009 as a trial in
August of that year it was reported that “Shenzhen-based nine municipalities and provinces (Beijing, Shanghai, Tian-
Huawei and crosstown rival ZTE have obtained about 25 jin, Fuzhou, Changsha, Jiangsu, Zhejiang, Shandong and
percent each” of China Mobile’s estimated $3 billion e ort Guangdong)38 and was expanded to 28 cities and provinces in
to upgrade its network. Foreign rms, meanwhile, accounted June 2010.39 Less than a month after the trial began in 2009,
for an additional third of the overall value of the contracts the program was amended to allow individual consumers a
awarded.31 maximum of 5 such appliances with subsidy, while companies
were limited to 50.40 In total, this program is expected to gen-
“ e rst wave of 4G investments that began in 2010 in erate an additional 150 billion yuan (approximately $22 bil-
Japan and Korea favored Ericsson and NSN, while the second lion) in domestic spending between participating individual
in the United States went largely to Ericsson and Alcatel- consumers and companies.38 A Ministry of Commerce report
Lucent. Huawei won a chunk of Europe’s 4G contracts [in in March 2011indicated that the program had stimulated 152
2012],” writes Reuters.31 billion yuan in sales of 40.27 million items, with an addi-
tional 41.72 million units having been traded in.39
e infrastructure upgrade was suggested by some to be
a precondition for China Mobile to o er Apple’s popular iP- Notable Policy Activity
hone handsets to its customers;31 Less than six months later
“Chinese regulators awarded 4G wireless licenses to China Import Tari s on Electronic Goods
Mobile Ltd, China Unicom Hong Kong Ltd and China Tele- Ten years after the PRC’s accession into the WTO, import
com Corp Ltd, removing the nal stumbling block to a deal
that industry observers had long expected.”32 tari s on some electronic products (including personal
computers and digital cameras) were cut by the Ministry of
According to market research rm Forrester, “China Mo- Finance from 20 percent to 10 percent.41
bile could gain 17 million new iPhone activations in 2014
alone,” while it is also expected to be a “much-needed boost “ e change will permit distributors and dealers to make
for Apple in a country where it’s trailing rivals, even though their prices similar to those overseas, removing an incentive
China is its second-largest market after the U.S.”32 e deal for consumers to buy their digital devices elsewhere,” a China
could reportedly generate as much as “$3 billion in revenue Daily-quoted analyst observed at the time, referring to the
[for Apple] in 2014.”26 common practice of a uent Mainland consumers traveling
to Hong Kong or other nations to purchase such goods—in
Meanwhile, “China Telecom [picked] Alcatel-Lucent to particular personal computers and mobile phones such as the
supply its next-generation 4G technology for a nationwide now-ubiquitous iPad.41
trial of high-speed mobile broadband.”33
Potential Policy Gains
In March 2014, according to Wei Zaisheng, the nance
director for ZTE, the Chinese state-owned equipment maker, Continued Adoption of and Participation in International
as told to the Financial Times, that from 300,000 4G base Standards
stations, China is slated “to have as many as 1 million” by the
end of the year.44 While domestic innovation and “strong support” for the
fruits thereof make sense in many contexts, straying from
e “Appliances to the Countryside” program subsidizes internationally-developed and -adopted standards can be a
appliance and consumer electronics manufacturers to sell signi cant cost to companies who have to redesign technical
goods worth a projected 920 billion yuan to customers in 14
rural provinces at discount over four years. e program began
with the sales of televisions, refrigerators, washing machines
and mobile phones receiving subsidies valued at 13 percent
of the purchase price,34 and later expanded to include per-
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