The Chinese government will strengthen its position in international trade and domestic performance by nurturing major electronics firms (and it this may threaten South Korean electronics companies). The industry-wide reconstructing led by the government reflects their will to become the next biggest giant in Asia and perhaps the world.

The Chinese government will support major electronics firms such as Huawei, Lenovo, Haier and ZTE until 2015. These companies are also leading the reconstructing and are expanding quickly in terms of both company size and net worth.

LG Economic Research Institute, an affiliate of South Korean conglomerate LG commented that there this may lead to the emergence of large electronics companies, amid increasing domestic competition. New IT firms and retailers are entering the market (which is already highly saturated), and meanwhile, traditional manufacturers such as Haier are becoming increasingly protective of their market shares.

Local Korean companies need to think of their countermeasures against Chinese rivals, as they plan to expand their growing clout in the smartphone market. The Chinese companies are also looking to expand further to the home appliance market; with improving technology and increasing size of the company, this is likely to happen in the near future.

Chinese electronics manufacturers may expand their growing clout in the smartphone market to the home appliance market on the back of their improving technology and increasing size.

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