Whether Developing Country Can Achieve Remarkable Progress in the Global Market by High-Tech—Huawei Company as an Example

With the development of international trade and the formation global value chain, global economy increases rapidly and many countries can gain benefits from it. However, the gap between the rich and the poor is becoming increasingly sharp. Developed countries dominate the global trade and achieve the majority of value chain. As a big developing country, China has developed to the second biggest economy, and the biggest export volume country, but still stays at the weak stage of the global value chain. Because in China, low-value-end manufacturing is the dominating economic sector. In order to achieve more value in global trade, China desires to update the business model from traditional industries to emerging industries by developing high-tech industries. It is widely believed that an increasing amount of Chinese companies concentrate on R&D and innovation to gain advantage in the new wave of global economy. Huawei, a remarkable Chinese high-tech company which develops from a sale agent firm to one of the most innovative companies in the whole world, will be presented in this paper to show the importance of high-tech and updating industrial structure for a company and countries.

high-income countries is 52 times bigger than the figure in low-income countries [7]. In addition, the richest people in the planet occupy above $2.7 trillion which is more than $2.2 trillion, the number from 3.5 billion bottom wealth population. In addition, the 1% top rich people have almost 25% wealth share of the whole world in 1980s, the share percentage increases to 40% by 2016 [8].
Therefore, the economies from developing countries are supposed to be paid increasing attention to.
As a result of reading international theories and global trade facts, the author desire to figure out how developing countries can achieve more benefits from international trade and narrow the gap between emerging countries and advanced countries. Whether high-tech company from developing country can attain success.
The hypothesis of this research is that whether developing countries can achieve more benefits by high-tech. In order to develop increasingly rapidly and efficiently, developing countries ought to upgrade industrial structure and blossom new products such as high-tech industry. Some high-add-value industries need to be established in developing countries. This is due to the fact that in traditional global business, developing countries have advantages in manufacturing exporting because of lower costs, and natural resource exporting such as oil and natural gas, but developed countries have technological advantages. Therefore, it may be a good option for developing countries to transfer domestic resource to produce high-add-value product to obtain more benefits. As a big developing country, China gain a great number of benefits from international business, but the development of China, some problems have to be concluded, so industrial structure in China ought to be upgraded to achieve higher target. This paper concludes how China develops from a poor agricultural society to the second strongest economy power in the world and means to provide some ideas which may be beneficial for developing countries to achieve more benefits from international trade.

Situation of International Business
As known to all, international business plays an important role in the development of the whole world, hundreds of years ago, trade generates across different countries due to different social and natural resource. Smith issues absolute advantaged theory in 1776 and encourage a nation to produce more effective items and free trade to others. His theory has been upgraded by Ricardo Heckscher Ohlin and other specialists. Due to New Trade Theory, first mover advantages and economics of scale which can suggest how companies can gain competitive advantages and decrease costs. Product life-cycle theory is issued by Vernon and suggests that in order to reduce costs, production location changes from developed counties to developing countries. This theory explains the fact that multinational corporation invest to developing countries, especially, in manufactur-

China Achieves Remarkable Because of Comparative Advantages
Since 2001, China has been a member of WTO, because of the rapid development of industrialization and exports benefits, China achieves a remarkable progress in economics and becomes the secondly strong economy power. In term of the characteristic of China, the theory of comparative advantages can be proved.
China has a great number of comparative advantages in resource-intensive and labor-intensive industry which contribute a lot to the development of China's economy. However, increasing Chinese researcher and entrepreneur realize the unbalance of economies structure which ought to be improved. It can be concluded that in order to develop economics rapidly and effectively, the only method is to update and transform its industrial structure. This is due to the fact that China's economy is based on exporting of resource-intensive and labor-intensive productions. A research shows that there is no evidence to prove Chinese exporting has significant technical upgrade, though the quality of product has improved [16]. In addition, it is stated that "the quality improvement of capital-intensive product and the enhancement of trade competitiveness of China are not due to the traditional R&D or the local enterprises imitation and improvement of foreign cash management experience and technology, but large introduction of foreign capital and the spillover effect on local enterprises of foreign-funded enterprises, namely processing trade lead by foreign capita l" [17].
It is concluded that such comparative advantages in China lead the result as exporting of primary products, slow technological upgrade, low demand elasticity, and diminishing returns of scale, which means that disadvantageous position is difficult to change for developing countries if they insist comparative advantages [18]. Therefore, industrial upgrade ought to be paid great attention. It can be believed that with the development of economics, resource and attention ought to be transferred from primary manufacturing industry to service and consumer-oriented industry, from low-add-value industry to high-add-value industry because of the fact that profit ratios between various industries generate different interests.

A New Business Model Is Expected to Be Considered
With the development of digitization and technology, the traditional manufacture will move to Industry 4.0, which means that it is possible to connect information, objects and people. This phenomenon will stimulate innovation extremely stronger in next few years and trigger the wave of technology. Thus, the importance of innovation and Research and Development (R&D) ought to be paid attention to  [20]. Similarly, in order to blossom the high-tech, knowledge-based industry need to be established, which means it is necessary and crucial to invest substantively in innovation, R&D, human capital and skills [21].
According to First-mover advantages, a company with new products may pro-dominate the market easily. In addition, the first firm is in a strong position to decrease the costs and fit the penetration pricing approach without obvious barrier [22].

Methodology and Case Study
It can be concluded by other research that China has limited benefits from the huge amount of high-tech exports. However, this paper focuses on a new trend, China's high-tech industry has improved rapidly.
In this paper, the method, case study will be used to verify author's hypothesis.
China, especially Huawei will be analyzed by SWOT. This dissertation mainly adopted deductive research. The quantitative analysis refers to measure magnitude and study a case of Huawei to make a result.

Highlights of High-Tech in China
In former part of this paper, it can be known that China has good statistics in high-tech exports but a few benefits. However, some data shows the situation may be different now.

Introduction and Developing Progress of Huawei
Huawei Huawei is a 100% private enterprise held by employees whose Employee Share-

Strength of Huawei's Developing
From 1987 to 2018, it takes Huawei 31 years to become such a huge giant, from a sale agent, which is a milestone for China's firm evolution. It can be concluded that innovation, which affect not only in technology but also in corporation governance plays an extreme important role in Huawei's development. Huawei's advanced technology and high quality are the reasons for the preference from consumers from the whole world.

Innovative Organizational Culture
On the one hand, Huawei insists customer-centric corporate core value, which means that innovation and R&D of Huawei based on requirements of consumer, lead technology advance. Huawei create value for customers and respect their requirements, which means that Huawei provides innovative, secure, stable and trustworthy services and products to partners and clients. On the other hand, Huawei depends on their dedicated workforce, which means that stimulating dedication is another core value. A great number of Huawei's employees are involved in corporate governance to extend their responsibility and enthusiasm. In addition, Huawei is a responsible enterprise, who advocates environment-friendly development, producing more effective products which can improve energy efficiency by 15% -26%. Huawei guarantees smooth communications for more than 30% of the population in the whole world and provide technical services 24/7 in 365 days every year. Moreover, Huawei provide study offer for over 4700 students from 108 countries and regions due to the Seed for Future Program in order to cultivate increasing people involve in digital and technical society.

Opportunities for Huawei's Developing
Huawei seizes the opportunity of the development of communication and network, and becomes a telecommunication giant producer. This last decade, the blossom of smartphone is growing dramatic fast, smartphone is one of the most important tools for people. Huawei grasps this great chance and develop rapidly, since 2015, Huawei has become one of the top 3 smartphone player, and in 2018 Huawei ships 200 million smartphones in the whole world. Huawei already attain spectacular benefits from globalization, so, with the increasingly rapid development of digital communication and information technology, Huawei has a bigger business map and market, and ought to insist globalization, as an industry giant may lead the trend and establish standard of the industry. Depended on Huawei's mass base, new products can be easily accepted by existing customers of Huawei. Great reputation, innovative products and quality services of Huawei may attract an increasing number of partners and consumers from the whole world. It is widely known that the 5G aging is approaching, facing the great opportunity, Huawei is ready to launch. Thanks to the strategy of Huawei's managers, the company has begun 5G innovation and R&D since 2009 and applied 2750 crucial patents for 5G. In addition, Huawei is the first company to figure out how to commercialize 5G. Due to advanced technology, Huawei has capability to use the simplest 5G data base station but the best performance, with more effective maintenance. Hence, the technical revolution for 5G is a great opportunity for Huawei to expand its business.

Weakness and Threats of Huawei's Development
However, from financial perspective, a disadvantage of Huawei cannot be ignored, as an unlisted company, it is unfavorable for public financing by issuing stocks. In addition, the democracy of Huawei's corporate governance may decrease efficiency for company running, and 6-month rotating chairman of the BOD may be negative for stable and sustainable corporate strategy. However, Huawei has some threats from globalization and international trade. Due to comparative advantages, division and cooperation, one company's product may be the raw material for another firm, Huawei need suppliers from the whole world. Therefore, cost of Huawei's product may be influenced by suppliers such as price fluctuation, corporate strategy and domestic policy. In addition, it is widely known that free trade can be easily affected by government policy due to trade deficit and political requirement. Recently, the news between United States and Huawei grasp the whole word's attention. Without obvious evidence, Donald Trump put Huawei on the blacklist on May 15th, and forbid American companies sale any products to Huawei, American department, enterprise even academic institute terminate the cooperation with Huawei, one after another. Since 2018, the US telecom giant AT&T break the agreement unilateral, one day before the conference under government's pressure. In addition, the US authority bans any equipments and products for Huawei's 5G to entry American market. Therefore, the unreasonable suppress from government is a big threat to Huawei.

Conclusions
From the development of China and the case of Huawei, it can be concluded that international trade is dramatically important to economy, and attaining competitive advantages can take a positive position in international trade. For a company or a country, formulating a stable, sustainable and efficient strategy is extremely crucial, which is the guideline for developing. In order to surpass traditional trade model, developing countries ought to develop some high-value-added industries rather than a role in low-value-added chain. High-tech companies from devel-oping countries may learn from giant or pioneer companies, and use own advantages to reduce cost or satisfy costumers' deeper requirements.
In the new era of technology and innovation, it is significant to innovate some fresh and irreplaceable technique to attain first mover advantages which have possibilities to achieve advanced position and dominate the market. The related statistics reveals that China's high-tech industries are booming developing, Huawei is an outstanding sample. In addition, Huawei shows the extreme importance of R&D and innovation. In the 30-year developing of the company, high-tech helps Huawei booming. The core technology is the most important competitiveness in the global trade. With the advent of the 5G era, Huawei is ready to take the opportunity to create more value for its own and the society.
In summary, technology creates values for companies and the companies are willing to spend more resource on innovation and R&D. It is the new model for business and society.

Limitation
This paper utilizes Huawei as the case to analysis how high-tech company in developing countries can attain positive position in global trade. However, Huawei and China are limited simple may not be representative or they have unique advantages that other countries may be different to learn from.