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Chinese government hopes to create another five Lenovos by 2015

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China Great Hall of the People
China Great Hall of the People

The Chinese government this week unveiled a set of objectives for its burgeoning electronics industry, as part of an effort to replicate the success that companies like Huawei and Lenovo have enjoyed in recent years. In a statement issued Tuesday, China's Ministry of Industry and Information Technology (MIIT) said that by the year 2015, it wants the country to have between five and eight Chinese manufacturers with sales of at least ¥100 billion ($16.1 billion).

The agency also encouraged companies to actively pursue mergers and acquisitions as a way to more closely integrate supply chains and increase global competitiveness. The idea is to shift the industry's focus away from lower cost supply chains, and toward higher end manufacturing under more globally recognizable brand names. Tuesday's announcement is part of a larger government initiative to consolidate several of China's fragmented industries, including steel, shipping, car manufacturing, and aluminum.

According to the Wall Street Journal, Huawei and Lenovo are currently the only Chinese companies to meet the government's ¥100 billion sales target. Both Huawei and ZTE came under intense scrutiny after a US government labeled them as a threat to national security last year, though the controversy doesn't seem to have had an immediate financial impact. Earlier this week, Huawei announced a 33 percent year-on-year increase in net profits, despite lingering concerns over its ties to the Chinese government.