Ericsson's relationship with China dates back to the 1890s, when the first batch of Ericsson handsets were shipped to Shanghai. Over the following century, China has gradually developed into one of Ericsson's primary markets. The Chinese market presents huge opportunities in terms of volume and size.

The Swedish telecommunications giant set up its first office in Beijing in 1985. Nine years later, Ericsson (China) Co. was established. Ericsson adopted a well laid out localization strategy to optimally exploit the Chinese market. Between the late 1990s to the early 2000s, Ericsson shifted the procurement and supply side of its wide range of business to China.

Ericsson also brought in its traditional partners. This offered huge employment opportunities for local Chinese citizens and boost local economic growth. Besides, huge investment in R&D by Ericsson and a sustained commitment to develop the country's 3G technology aided China's telecom and IT growth. In 2000, China became the company's second largest market, grossing seven percent of its global sales revenue.

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