Article at a glance:

China's high-tech market: A race to the middle

• Chinese high-tech companies are growing three times as fast, on average, as their multinational competitors. What are multinationals doing wrong?
• Multinational corporations are sticking too rigidly to product specifications for developed markets and to high prices. As a result, they are squeezed into the thin, high-end market in China.
• To succeed, these companies should focus on the faster-growing midrange segment of Chinese high tech and be prepared to acquire a Chinese player in these markets.