Applications in Other Industries: From Technological Catch-up to International Development

Abstract

AbstractThis chapter looks at others industries where China succeeded to catch up beyond telecommunications and the Internet. Despite contrasted morphological profiles, the four industries examined exhibit several commonalities. Again, learning from foreign competitors, scale effects achieved in China, and the strong control of the authorities are key. In addition, a general rule is that Chinese companies started to build positions in their home country before tackling international markets; the status of national champions gained thanks to the massive Chinese market that helped Chinese firms to establish their legitimacy outside of China. Progressiveness also occurred with the depth of the involvement in the value-chain: when Chinese firms enter one industry, they first rely on foreign suppliers for sophisticated parts before trying in a second phase to emancipate. For example, the Chinese high-speed train still relies on foreign suppliers for some specific parts. The challenge for Chinese firms is to internalize the design and the production of those parts.KeywordsCatch-upInternationalizationManufacturingValue-chainRobotization