Exploring the competitive advantages of China’s telecommunication equipment industry: the case of Huawei

無Purpose – The fast growth and global success of China’s ICT industry suggests the presence of national competitive advantages. The purpose of this study is to examine these competitive advantages and draw conclusions about their influence on company performance using the case of Huawei. Design/methodology/approach – Using the Porter Diamond Theory of National Advantage the study analyses the development of China’s telecommunication equipment industry and existing competitive advantages. Using the case of Huawei, the author explores the impact of Porter’s determinants on the company’s growth and global success. Findings – The study finds that China’s telecom equipment industry leveraged basic factors such as a large pool of low-cost labor while gradually developing more sustainable advantages. The Chinese government played a major role in driving initial demand for telecom equipment and facilitating the development of China’s ICT sector by opening its market to foreign investment and promoting innovation. Although the national competitive advantages elaborated in this study certainly helped the industry to excel, Huawei’s global success is also tied to its early decision to focus on R&D instead of relying on foreign technology. The additional support Huawei received from Beijing, particularly after being selected as a national champion, helped it in numerous ways but might hinder Huawei’s growth due to an increased negative image, particularly in the United States. Research implications – This research adds to the body of literature on the creation of national competitive advantages and their influence on the development and success of domestic industries