This book addresses two of the most important trends in political economy during the last two decades - globalization and decentralization - in the context of the world's most rapidly growing economic power, China. The intent is to provide a better understanding of how local political and economic institutions shape the ability of Chinese state-owned firms to utilize foreign direct investment (FDI) to remake themselves in the transition from inefficient and technologically backward firms into powerful national champions. In a global economy, the author argues, local governments are increasingly the agents of industrial transformation at the level of the firm. Local institutions are durable over time, and they have important economic consequences. Through an analysis of five Chinese regions, the treatment seeks to specify the opportunities and constraints that alternative institutional structures create, how they change over time, and ultimately, how they prepare Chinese firms for the challenge of global competition.
• Accessible analysis of auto industry and process of globalization in China, world's fastest growing economy • First book length treatment of Chinese auto industry in over a decade • Will appeal to audiences in political science, economics, international and East Asian studies
Part I. Introduction: 1. Local governments, FDI, and industrial development; 2. The view from the center; Part II. Development in a Protected Market: 3. Coordinating development in the auto sector; 4. Shanghai: a local development state; 5. Beijing and Guangzhou: laissez-faire local states; 6. Changchun and Wuhan: firm-dominated localities; Part III. Deepening Global Integration: 7. Global integration and the challenge of upgrading; 8. Growth, change, and the challenge of governance; Part IV. Conclusion: 9. Local institutions in a global economy.
'The book blends real scholarship with practical insights, and is highly readable. It should benefit anyone interested in China - government officials, politicians, businessmen and academics.' Journal of China Quarterly
'This book is a valuable addition to a growing literature on the roles of foreign direct investment (FDI) and local governments (LGs) in China's industrial development. … A major strength of the book lies in the successful integration of its analytical framework and its case material. … the book produces interesting new research questions.' The China Journal