Ericsson is a world leader in telecommunications. In 1999, it had net sales of US$26 billion and a global market share for mobile infrastructure of 30%, while in China it had 40% market share. Ericsson's history in China dates back to 1894 when the company made its first shipment of 2000 desk telephone handsets to Shanghai. Ericsson re-entered into the Chinese market in 1984 by delivering its AXE-10 exchange to the Beijing post and telecommunications authorities (Deverge, 1986). In 1985, Ericsson opened its first representative office in China. Since then, Ericsson's China activities have experienced an explosive ...