Global Value Chains and the Innovation of the Chinese Mobile Phone Industry

The global value chain strategy, which is key to the success of the Chinese mobile phone industry, provides an effective channel for the industry to innovate and catch up with foreign competitors. The innovation activities prevented Chinese firms from falling into the low value-added trap. They have captured increasingly more value added from both home-grown and foreign brand mobile phones. The strategy has successfully nurtured a few home-grown brands, namely Huawei, OPPO and Xiaomi.