  Focusing on the telecom manufacturing industry in China, this paper contends
that the existing literature needs to be expanded in order to explain the
Chinese case. First, product cycle theory could be applied to explain
multinational corporations' strategies of importing and localizing their
products in China in order to take advantage of lower labor costs and often
more significantly to break barriers to the Chinese market. Second, there are
no significant indicators pointing to local multinational subsidiaries and
indigenous manufacturers serving as a substantial part of the cross-national
production networks in the global telecom industry yet, although there are some
signs of potential development. Third, the success of "Wintelism" and the
maturity of cross-national production networks in the global market have had
significant impacts on China's indigenous industry.
