Neo-Mercantilism in The Semiconductor Industry: The Chinese Strategy

Abstract

This paper examines the impact of China's neo-mercantilist policies on its semiconductor industry. China strategically employs a neo-mercantilist approach to enhance its technological capabilities and strengthen its position in the global semiconductor sector. The research method used in the paper is qualitative. The study analyzes the multifaceted strategies encompassing industrial policies, trade practices, and technological advancements to understand their contributions to the industry's growth and resilience. It also explores how this growth benefits China's economy and highlights the role of economic factors in shaping political partnerships. The findings demonstrate that China's neo-mercantilist policies have played a pivotal role in fostering the development of its semiconductor sector through targeted industrial policies and trade practices. The emphasis on technological advancements has reduced dependence on foreign technology and enabled the production of high-quality semiconductors domestically. The semiconductor industry's growth in China has positively impacted the economy, contributing to job creation, increased exports, and enhanced economic competitiveness. Moreover, the paper highlights the importance of economic factors in driving political partnerships, as China's semiconductor industry growth has facilitated collaborations based on mutual economic interests.