This condition can create a favorable environment for Huawei to market its products. In addition, the Chinese government also supports and provides opportunities for telecommunications industries. According to Ahrens (2013), “the Beijing government has adopted an explicit policy of supporting domestic telecommunications manufacturers and restricting access to foreign competitors.” This means that the Chinese government is starting to focus on developing the private economy. To a certain extent, this approach of the Chinese government plays an important role in the development of Huawei. In addition, the “Labor Contract Law of the People's Republic of China” (2012) stipulates that the government protects the labor rights of every worker and improves the minimum wage through legislation. This is effective legal protection. However, costs for some companies, such as Huawei, are increasing. This poses a great challenge for Huawei.The economic environmentAccording to the "Human Development Reports", China's HDI index is increasing. This means that people's standard of living has increased. Additionally, people have more and more disposable income. Moreover, electronic products have become an indispensable part of life. This has allowed market demands to become increasingly important. All become favorable factors for Huawei's development.