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Purpose

Aims to provide the contextual framework for local and foreign manufacturers in assessing the market potential of China's telecommunications equipment market, including an analysis of contemporary economic, political and historical issues.

Design/methodology/approach

This is an inductive, interpretative case study.

Findings

History matters in the evolution of China's telecommunications market especially given its concern over maintaining control of a strategic interest, as well as the protection of vested interests within the state‐controlled economy.

Originality/value

To practitioners: the importance of research, vis‐a`‐vis interpretation and argument, in assessing market potential in a high‐technology market. To academics: the role of government in the value chain and network especially when they have controlling stakes, as is the case here with China's telecommunications equipment manufacturers and operators.

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