Multinationals and Locals for Competition

As the high-tech market competition is becoming more and more severe, multinational high-tech companies in China are losing out to their local counterparts.

The most potential market is where products cost an average of 20 to 30 percent less than their high-end counterparts. However the multinationals is sticking too rigidly to product specifications for developed markets and to high prices, thus in many sectors have put themselves into the thin, high-end market in China.

Take electrical equipment as an example, multinationals focused almost exclusively on the high end of the market, midrange Chinese players—led by emerging contenders such as Chint, a maker of low-voltage electronics, and Shanghai Electric, a maker of power generation products—have expanded their share of the overall market to 65 percent, from 55 percent, over the past five years.

“If you can’t beat them, acquire them.” This has become popular by multinational high-tech companies in China as they face fierce competition from Chinese players.

However, the way is still long.

This news is from China electronics manufacturer.

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