Figure 5. Distribution channels of domestic firms
Source: summarized by the authors
Chinese producers also often provide better quality after-sale services. Since many of
these mobile phone manufacturers are also consumer-electric producers, they have experience
and expertise in after-sale service. Bird built nearly 2,000 customers support centers, many in
second and third-tier cities.
Government Support
Last and most important is the Chinese government’s carefully planned intervention and
support for the handset manufacturing sector. In the early stages, the Chinese government
maintained policies promoting foreign investment in this industry. Diverse forms were adopted,
including foreign wholly owned enterprises, joint venture enterprises, joint cooperation
enterprises and so on. The presence of many joint venture handset manufacturers in China
fostered the diffusion of technology expertise across the country. This was a broad-ranging
China's Mobile Handsets FINAL DRAFT 2006.sph ERSA2006 Greece
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