The typical organization is hierarchical, with workers answering to a manager, and that manager answering to a still-higher manager, and so on. The v… - Clay Shirky

Wiko, a French phone company, went from concept to company when the founders were shopping for parts in Shenzhen (as one does). Wiko had trouble raising money—few investors believed a new European phone company could succeed—so they took an investment from the Chinese manufacturer Tinno Mobile. Wiko is thus mostly Chinese, both owned and supplied by Tinno, but given its thin veneer of French design and marketing it looks like a local firm to the French. The resulting excitement over Wiko as a homegrown business helped them to become the second largest phone vendor in France (after Samsung, as usual). This preserves the pattern of “designed elsewhere, made in China,” but with the twist that ownership, not just sourcing and manufacturing, has now moved to China as well.

Xiaomi, founded in Beijing in 2010 by Lei Jun, a computer scientist and charismatic serial entrepreneur now in his mid-forties, has accomplished a lot in half a decade. Even just looking at its sales figures, the superlatives pile up. In its short life, it has gone from a startup focused on making a new mobile phone interface to beating Samsung as the number one phone vendor in the largest market in the world in 2014. Its products are so popular in China that it has become the third largest ecommerce firm there just selling its own products, after the general marketplace sites Alibaba and JD.com, and ahead of Amazon.cn.

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