This paper is a preliminary and illustrative case study of Beijing′ s emerging mobile communication industrial (MCI) cluster, which helps understand the cluster by qualitative analysis and description. Beijing′s MCI cluster is emerging as far as the competence of the industry and its spatial concentration are concerned, although it is not the type of the cluster described by PORTER du e to the low competence of indigenous firms. The formation of the cluster can be explained by means of the factor and demand conditions of Beijing. However, it is mostly determined by the multinationals that promote the growth of the indust ry and the formation of the cluster, and by the government that also plays a key role in many ways. As a matter of fact, the interaction between the multination als and the local government is the key to understanding the formation of the cl uster. All in all, Beijing′s emerging MCI cluster is a value-chain, geographic ally concentrated but non-localized cluster, which is highly dominated by the m ultinationals and the local government. Its special characteristics bear some po licy implications as to the change of the roles of the local government and the localization of multinationals, etc. This paper is a preliminary and illustrative case study of Beijing’s emerging mobile communication industrial (MCI) cluster, which helps understand the cluster by qualitative analysis and description. Beijing’s MCI cluster is emerging as far as the competence of the industry and its spatial formation is concerned, although it is not the type of the cluster said by PORTER du e to the low competence of indigenous firms. The formation of the cluster can be explained by means of the factor and demand conditions of Beijing. However, it is mostly determined by the multinationals that promote the growth of the indust ry and the formation of the cluster, and by the government that also plays a key role in many ways. As a matter of fact, the interaction between the multination als and the local government is the key to understanding the formation of the cl uster. all in all, Beijing’s emerging MCI cluster is a value-chain, geographic ally concentrated but non-localized cluster, which is highly dominated by the m ultinationals and the local government. Its special characteristics bear some po licy implications as to the change of the roles of the local government and the localization of multinationals, etc.