During the economic reforms of the last twenty years, China
adopted a wide array of policies designed to raise its
technological capability and foster industrial growth.
Ideologically, the government would not promote private-ownership
firms and instead created a hybrid concept, that of
"nongovernmental enterprises" or minying qiye. Adam Segal examines
the minying experience, particularly in high technology, in four
key regions: Beijing, Shanghai, Xi'an, and Guangzhou.
Minying enterprises have been neither clear successes nor abject
failures, Segal finds. Instead, outcomes varied: though efforts to
create a core of innovative high-tech firms succeeded in Beijing,
minying enterprises elsewhere have languished. He points to
variations in local implementation of government policies on
investment, property-rights regulation, and government supervision
as a key to the different outcomes. He explains these peculiarities
of implementation by putting official decisions within their local
contexts. Extending his analysis, he compares the experience of
creating technology enterprises in China with those of Korea (the
chaebol system) and Taiwan (enterprise groups).
Based on interviews with entrepreneurs and local government
officials, as well as numerous published primary sources, Digital
Dragon is the first detailed look at a major Chinese institutional
experiment and at high-tech endeavors in China. Can China become a
true global economic power? The evolution of the high- technologies
sector will determine, Segal says, whether China will become a
modern economy or simply a large one.
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