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Synchronizing Export Orientation with Import Substitution: Creating Competitive Indigenous High-Tech Companies in China

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  • Zhou, Yu

Abstract

Summary This paper examines how the synergy between China's domestic and the international market has affected its most competitive indigenous companies. Through case study in China's ICT sectors in the 1990s, the paper shows that when export upgrades and domestic market growth intersect in timing and sectors, that is, when they synchronize, Chinese companies found conditions most favorable to compete with foreign companies within the domestic market. The synchronization has significant impact on sectors for both mature products and technologically advanced products. It is thus necessary to reexamine the role of import-substitution practices under the new context of globalization and in conjunction with exports.

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  • Zhou, Yu, 2008. "Synchronizing Export Orientation with Import Substitution: Creating Competitive Indigenous High-Tech Companies in China," World Development, Elsevier, vol. 36(11), pages 2353-2370, November.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2353-2370
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    References listed on IDEAS

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    1. Isabel-Maria Bodas Freitas & Jojo Jacob & Lili Wang & Zibiao Li, 2023. "Energy use and exporting: an analysis of Chinese firms," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 179-207, January.
    2. Ten Brink, Tobias & Butollo, Florian, 2018. "A great leap? Domestic market growth and local state support in the upgrading of China's LED lighting industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 18(2), pages 285-306.
    3. Felix Haifeng Liao & Yehua H Dennis Wei, 2013. "Tncs' Technology Linkages with Domestic Firms: An Investigation of the Ict Industry in Suzhou, China," Environment and Planning C, , vol. 31(3), pages 460-474, June.
    4. Plawgo, Bogusław & Klimczuk-Kochańska, Magdalena & Juchnicka, Marta & Citkowski, Mariusz, 2011. "Przedsiębiorczość akademicka. Dobre praktyki [Academic Entrepreneurship: Good Practices]," MPRA Paper 84988, University Library of Munich, Germany.
    5. Giustolisi, Alessio & Terstriep, Judith, 2020. "Chinesische Investitionen im Ruhrgebiet: Eine Chance für den Strukturwandel?," Forschung Aktuell 09/2020, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    6. Brandt, Loren & Thun, Eric, 2016. "Constructing a Ladder for Growth: Policy, Markets, and Industrial Upgrading in China," World Development, Elsevier, vol. 80(C), pages 78-95.
    7. Behuria, Pritish, 2017. "The political economy of import substitution in the 21st century: the challenge of recapturing the domestic market in Rwanda," LSE Research Online Documents on Economics 69470, London School of Economics and Political Science, LSE Library.
    8. Huiwen Gong & Robert Hassink & Cassandra Wang, 2021. "Strategic coupling and regional resilience in times of uncertainty: the industrial chain chief model in Zhejiang, China," PEGIS geo-disc-2021_06, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    9. Hong, Yu & Bar, François & An, Zheng, 2012. "Chinese telecommunications on the threshold of convergence: Contexts, possibilities, and limitations of forging a domestic demand-based growth model," Telecommunications Policy, Elsevier, vol. 36(10), pages 914-928.
    10. Yi Liu & Yutian Liang & Shiping Ma & Kaixuan Huang, 2017. "Divergent Developmental Trajectories and Strategic Coupling in the Pearl River Delta: Where Is a Sustainable Way of Regional Economic Growth?," Sustainability, MDPI, vol. 9(10), pages 1-15, October.
    11. A. A. Gnidchenko, 2017. "Import substitution as a complementary strategy," Studies on Russian Economic Development, Springer, vol. 28(6), pages 593-599, November.
    12. Daniel Schiller & Henning Kroll, 2013. "The global economic crisis as leverage for emerging regional growth paths? Differentiated evidence from China – three years onwards," Chapters, in: Sören Eriksson (ed.), Clusters and Economic Growth in Asia, chapter 5, pages 85-118, Edward Elgar Publishing.

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