Dr. Luo Zhongsheng, ZTE said "We have been investing in 3G applications for the past 11 years. During that time, we’ve made a lot of technological innovation. These innovations have given us the edge to compete globally in the 3G market. These advantages will also benefit our continuing research in LTE, the 4G standard. This is a good opportunity for Chinese enterprises."

The development of TD-SCDMA has had additional significance for many Chinese enterprises. Local firms have obtained more than 100 patents combined in key technologies in the process. Experts explain how important technology is for the development of enterprises.

Gao Xudong, Professor of Tsinghua University said "For a technology-intensive industry, what's most crucial is core technology. That’s why ZTE, Huawei, Datang, and the whole of China’s telecom industry can compete on a global scale. One aspect is they have good management. But, it is mainly based on the country’s core technology breakthrough. The combination of strong management and homegrown technology has created a powerful force, allowing the telecom enterprise to thrive. In contrast, China’s home appliance industry has not experienced such a breakthrough. Although they have good management, they lack core technology, they’re always spinning in the low-end."

China's 3G market is just taking off. Considering the wide application of the technology across the country, and the continued evolution to LTE, or 4G, the market potential is massive. For most of China’s telecom enterprises, it’s an opportunity they can’t afford to miss.

Yang Hua, General Secretary of TD-SCDMA Industry Alliance said "Only a certain market scale can support the industry and enterprises’ sustainable development. With the arrival of the 3G era, we’ve changed the market structure. This will help domestic enterprises gain even more strength as 3G matures in China. And with a solid foundation, they can grow into world-class telecom manufacturers in the future."

China is striving to enhance the country’s development and application of intellectual property. Although most Chinese firms, including those in telecom manufacturing are little-known today outside their own industries, things are beginning to change. And perhaps in ten to twenty years, the synergy of an evolving innovation system, maturing firms, a thriving economy, and technology development may help China finally create a truly comparable industrial economy, to those of developed countries.

(CCTV May 4, 2009)