China wants more local electronics success stories
The Chinese government has set a target of having five to eight electronics companies with sales of at least 100 billion yuan (US$15.9 billion) by 2015.
In a statement on Tuesday, China's Ministry of Industry and Information Technology (MIIT) said that it hopes local electronics companies can speed up the development of core technologies to form competitive global multinational companies with highly-recognizable brand names.
The agency added that it encourages leading companies to look into acquisitions, and to integrate their supply chain and production line to increase productivity and competitiveness.
MIIT also suggested electronic companies in the manufacturing industry move into IT services, as well as integrate hardware, software, and IT services, to introduce new innovative products.
The goal for the electronics segment is part of a wider plan to consolidate China's major industries, including automotive, steel, cement, shipping, and rare earth.
The Wall Street Journal reported that only Huawei Technologies and Lenovo Group achieved more than 100 billion yuan (US$15.9 billion) in sales as of 2011.
China has been known as a key manufacturing hotspot because of its cheap labor force. In a 2012 report, market analysts said that tech innovation would shift toward China due to market opportunities and strong capital availability, as well as government incentives around certain IT segments.