China's Transnationals Developing Faster than Expected

One of the clearest signs that China's transnational corporations may be advancing faster than most people expected is the recent decision by British Telecom to buy equipment from a top Chinese telecom equipment manufacturer, Huawei Technologies. Huawei has been primarily a supplier to Chinese firms and to firms in other less industrialized nations, but it has also been developing more sophisticated telecom equipment at a relatively rapid pace, pouring increasing sums of money into R&D and technology licensing agreements. The victory of Huawei in the tough bidding to provide equipment to British Telecom's $10 billion 21st Century Project bodes well not only for this particular firm but for other Chinese transnationals who have been pursuing a similar course.