Huawei Technologies Co. Ltd, (Huawei) has successfully expanded its class from just being a small company in Shenzhen, China, to become a key player in the telecommunications market worldwide. Huawei’s success in various markets unfolds a group of business-linked factors, which propose probabilities for other Chinese companies to thrive in the foreign markets (Porter, 2011). For instance, Huawei started with Chinese market being its core focus prior the economic reform in the contemporary business environment and the company slowly gained superiority in various markets. The thrive thus suggests chances for a great future for other companies including the emerging domestic firms to grab a considerable portion of worldwide market share owing to the unique nature of Chinese business environment. The success was attributed by various factors including innovation and industrialization, foreign direct investment (FDI) that maintains its consistency in the international markets Fu (2015).

 According to Fu, (2015), China’s business environment is reputed as a promising economy in regards to the available number of market opportunities not only for local investors but also for foreign investment. China has wealthy space in favor of economic development considering the fact that it presents viable chances for accessing a large market in different countries. In addition, the country offers investors chances for increased savings through reduced costs such as labor costs which enables companies to develop substantial transformations on operations in line with market changes (Rao, Rao & Sivaramakrishna, 2008). 

China is ranked among the top leading countries with large economic ratios in the world based on purchasing power parity (PPP) (Chan, 2007). The Chinese government has continued to focus on the improvement of GDP (Gross domestic product) and also, the country characterizes needs for increasing its per capita GDP (Lardy, 2014) . China evidences multifaceted strategies towards the betterment of its economy, mechanisms that boosts its market foundation. China encourages a dual structure of its economy while deterring centrally intended market (socialist economy).

However, the ever changing trend in technological advance cement can be backed as the cause of speedy industrial development in china. As a result, the country enjoys substantial range of direct investments from foreigners and also, gathers enough privileges concerning increased productivity. Importantly, china is in the World Trade Organization (WTO), which minimizes market restraints thus enhancing approvals for foreign trade (Cavusgil, Rammal & Freeman, 2011). Cooperative business enterprises are supported by the economic reform in china, which indicate probabilities for market growth in foreign environments (International, 2015). Huawei’s expansion from Shenzhen to become an international based firm proves the significance of economic transformation to other Chinese firms as far as market diversification is concerned.

The trend on multi-polarization of resources in the world continues to suggest positive probabilities for better development of Chinese market economy in the future (Gu, 2006). Regional integration of firms also builds opportunities for a sustainable market share in different business environments internationally. The contemporary Chinese business environment enacts the essence of escalating growth rates, effective use of domestic resources including rural workforce, improved financial systems and significant restructuring of government owned enterprises. It is as well intended to encourage the development on productivity of privately owned institutions while holding enough strategies able to maintain social security (Fu, 2015). The environment as well exemplifies significant emphasizes on educational development, particularly, scientific improvement which often entertain international cooperation in regards to changes in the international market environments.  The transformation on its economic arena has made china a key player in the international trade competing with large nations such as Germany and the United States, which increases its economic factors and reputation worldwide.

The country has been an area of interest for ‘Foreign Direct Investment’ (FDI). Considerable FDI has continuously gained China a great reputation on the bases of production value, tax revenue, which increases its ability for foreign trade (Wu & Ma, 2016). The reputation enables Chinese firms to maintain their competitive position while building a valuable customer base in different markets (Porter, 2011).

China provides firms enough space to evaluate the appropriate measures for creating sustainable customer segments, innovation base, Research and development (R&D), and distribution channels. China based companies have the priority to navigate for both industrial and administrative capabilities which are essential for imposing a positive change in the international market (Porter, 2011). Reduced government role in the Chinese market, for example, gives firms the mandate to endorse their products in the market. Government support through education provides the technical knowledge that emerging firms can use to diversify their market mix thus developing superiority (Gu, 2006). It provides firms chances to strategize their operations in accordance with consumer requirements through innovation and R&D.  

Reduced restraints on foreign trade by the government have significant benefits for Chinese companies (Griffin, 2012). For instance, firms with low scale of production, R&D investment have chances for reaching the international markets through market factors such as mergers and acquisitions.

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