Abstract
In this chapter, the recent characteristics of Chinese management accounting and its general background are examined with reference to the cellular phone terminal unit manufacturers in comparison with the Japanese situation. In particular the formation of big businesses and the effect of their management system on management accounting are clarified. At the same time, this chapter refers to a bipolar divergence between the big businesses and the defeated firms in this industry which was caused by the intense price competition. Lastly, it is concluded that the big businesses and the defeated firms which were reorganized with broadly raised social capital by state-owned enterprises will move the management accounting system forward into the new type of international management accounting.
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Notes
- 1.
Data for each cellular phone manufacturer are quoted from their financial reports and edited for the purpose of this article: http://www.chinabird.com/zh-cn/about/; http://money.finance.sina.com.cn/corp/go.ghp/vFD_FinancialGuideLine/stocid/600057/displaytype/4.pthml; http://www.cinafo.com.cn/gszx/gszx000100.html; http://www.cinifo.com.cn/gszx/gszx6000057.html; http://share.jrj.com.cn/cominfo/ggdetail_2008-06-07_600,057_648490_stock.htm: ZTE Corporation Annual Report, 2007 and its Summary; Xiaxin Electronic Joint-Stock Company Annual Report 2005, Annual Report Summary 2006 and Annual Report 2007: Huawei Technologies Co., Ltd. Annual Report 2004, 2006 and 2007.
- 2.
TCL refers to the TCL group which was established in 1980 by a local government in Guangdong Province, which became TCL Communication Facilities Corporation, Ltd. in 1985 (Hashida 2008).
- 3.
Bodao is officially Fenghua Bodao Company, which was established in 1992 by four private capitalists and local government. It rapidly grew in the domestic of cellular phone production market, passing top Western manufacturers ( Nokia and Motorola) in market share in 2003.
- 4.
Huawei Technologies Co., Ltd. was established as a private science and technology company in 1988 by Ren Zhengfei, who was discharged from military service. It is well known for its rapid growth in mobile communication and information machinery marketing (Hashida 2008).
- 5.
ZTE is Zhongxing Communication Stock Co., Ltd. established in 1985 in Shenzhen. It is one of the two most successful companies in Chinese communication facilities production (Li 2007).
- 6.
Xiaxin is officially Xiaxin Electronic Co., Ltd. and is in the same situation as Bodao.
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Nishimura, A. (2019). Recent Development and Features of Management System in China: The Case of Cellular Phone Handset Manufacturers. In: Management, Uncertainty, and Accounting. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-8989-3_11
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