Abstract

Click to increase image sizeClick to decrease image size Notes The authors would like to thank Miguel Angel Lopera, Craig Pollack, Chiqui Strada, Almudena Villanueva and John Zysman, as well as the editors and reviewers of New Political Economy, for very helpful comments and suggestions on previous drafts. Research support from the Carnegie Corporation, the Rockefeller Brothers Fund and the Instituto de Empresa Foundation is gratefully acknowledged. 1. Giandomenico Majone, ‘From the Positive to the Regulatory State: Causes and Consequences of Changes in the Mode of Governance’, Journal of Public Policy, Vol. 17, No. 2 (1997), pp. 39–167. 2. See Steven Vogel, Freer Markets, More Rules (Cornell University Press, 1996). 3. Carl Shapiro & Hal R. Varian, Information Rules: A Strategic Guide to the Network Economy (Harvard Business School Press, 1999). 4. See Chalmers A. Johnson, Laura D'Andrea Tyson & John Zysman, Politics and Productivity: The Real Story of Why Japan Works (Ballinger, 1989). 5. For example, Peter Evans, Embedded Autonomy: States and Industrial Transformation (Princeton University Press, 1995). 6. Nicholas R. Lardy, Integrating China into the Global Economy (Brookings Institution Press, 2002). 7. Chi Wa Yuen, ‘The Fifth Asian Dragon: Sources of Growth in Guangdong, 1979–1994’, Contemporary Economic Policy, Vol. 16, No. 1 (1998), pp. 1–11; Linda F. Y. Ng & Chyau Tuan, ‘FDI Promotion Policy in China: Governance and Effectiveness’, The World Economy, Vol. 24, No. 8 (2001), pp. 1051–75. 8. Eric Thun, ‘Industrial Policy, Chinese-Style: FDI, Regulation, and Dreams of National Champions in the Auto Sector’, Journal of East Asian Studies, Vol. 4, No. 3 (2004), pp. 453–89. 9. Lu Zheng, ‘On the Comparative Advantage of Chinese Industries’, Chinese Economy, Vol. 37, No. 2 (2004), pp. 6–15. 10. Barry J. Naughton & Dali L. Yang, Holding China Together: Diversity and National Integration in the Post-Deng Era (Cambridge University Press, 2004). 11. ‘The Scourge Returns’, The Economist, 22 October 2005, p. 18. 12. Ted Fishman, ‘The Chinese Century’, The New York Times Magazine, 4 July 2004. 13. ‘Trade Surplus in China Hit $5.7 Billion in March’, The New York Times, 12 April 2005, p. C4. 14. Keith Bradsher, ‘The Two Faces of China: Giant Global Producer is Expanding Its Role as a Consumer, Creating Threats and Opportunities’, New York Times, 6 December 2004, p. C1. 15. David Zweig & Bi Jianhai, ‘China's Global Hunt for Energy’, Foreign Affairs, Vol. 84, No. 5 (2005), pp. 25–38. 16. Todd Zaun, ‘Nissan to Halt Auto Output at 3 Plants in Japan for 5 Days’, New York Times, 26 November 2004, p. C5. 17. Foreign Investment in China, 2004, U.S.–China Business Council, http://www.uschina.org/statistics/2005foreigninvestment.html (accessed 23 October 2006). 18. 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Singh (eds), Information Technology and Global Politics (State University of New York Press, 2002), p. 143. 24. See Greg Linden, ‘China Standard Time: A Study in Strategic Industrial Policy’, Business and Politics, Vol. 6, No. 3 (2004), online version. 25. As quoted in Suttmeier & Xiangkui, ‘China's Post-WTO Technology Policy’, p. 11. 26. Linden, ‘China Standard Time’, p. 15. 27. Ibid., p. 16. 28. See Robert Latham (ed.), Bombs and Bandwidth: The Emerging Relationship between Information Technology and Security (New Press, 2003). 29. Suttmeier & Xiangkui, ‘China's Post-WTO Technology Policy’. 30. Graham Lea, ‘High Prices, False Steps Help Windows Lose to Linux in China’, The Register, 8 August 2000, http://www.theregister.co.uk (accessed 23 October 2006). 31. Giandomenico Majone, ‘The Rise of the Regulatory State in Europe’, West European Politics, Vol. 17, No. 3 (1994), pp. 77–101; Giandomenico Majone, Regulating Europe (Routledge, 1996); and Michael Moran, ‘Understanding the Regulatory State’, British Journal of Political Science, Vol. 32, No. 2 (2002), pp. 391–412. 32. See Vogel, Freer Markets, More Rules, and Susanne Lütz, ‘The Revival of the Nation-State? Stock Exchange Regulation in an Era of Globalized Financial Markets’, Journal of European Public Policy, Vol. 5, No. 1 (1998), pp. 153–68. 33. See Mark Thatcher, ‘Delegation to Independent Regulatory Agencies’, West European Politics, Vol. 25, No. 1 (2002), pp. 125–47, and David Coen & Adrienne Heritier (eds), Refining Regulatory Regimes: Utilities in Europe (Elgar, 2005). 34. Walter Mattli & Tim Büthe, ‘Setting International Standards: Technological Rationality or Primacy of Power?’, World Politics, Vol. 56, No. 1 (2003), pp. 1–42. 35. Anthony Cheung, ‘The Politics of Administrative Reforms in Asia: Paradigms and Legacies, Paths and Diversities’, Governance, Vol. 18, No. 2 (2005), pp. 257–82; Margaret M. Pearson, ‘The Business of Governing Business in China: Institutions and Norms of the Emerging Regulatory State’, World Politics, Vol. 57, No. 2 (2005), pp. 296–322. 36. On the direct link between domestic standards institutions and influence in international standards deliberations, see Mattli & Büthe, ‘Setting International Standards’. 37. For an overview of these efforts, see Gregory Chow, ‘The Role of Planning in China's Market Economy’, Journal of Chinese Economic and Business Studies, Vol. 3, No. 3 (2005), pp. 193–203. 38. See Zhiyong Lan, ‘The 1998 Administrative Reform in China: Issues, Challenges, and Prospects’, Asian Journal of Public Administration, Vol. 21, No. 1 (1999), pp. 29–54; and King Tsao & John Abbott Worthley, ‘Chinese Public Administration: Change with Continuity during Political and Economic Development’, Public Administration Review, Vol. 55, No. 2 (1995), pp. 169–74. 39. Dali Yang, Remaking the Chinese Leviathan: Market Transition and the Politics of Governance in China (Stanford University Press, 2004), pp. 179–81. 40. See Susan Shirk, The Political Logic of Economic Reform in China (University of California Press, 1993). 41. Dali Yang, ‘Can the Chinese State Meet its WTO Obigations? Government Reform, Regulatory Capacity, and WTO Membership’, American Asian Review, Vol. 20, No. 2 (2002), pp. 191–221. See also Yang, Remaking the Chinese Leviathan. 42. Yang, Remaking the Chinese Leviathan. 43. Yang, ‘Can the Chinese State Meet its WTO Obligations?’. 44. For an overview, see ‘Raising the Standard: China's Rush to Develop Technology Standards’, The Hoffman Agency Newsletter, March 2004. 45. See Ann Weeks & Dennis Chen, ‘Navigating China's Standards Regime’, China Business Review, May–June 2003. 46. For a critical review of the early reforms, see Tao-chiu Lam & Hon Chan, ‘China's New Civil Service: What the Emperor is Wearing and Why’, Public Administration Review, Vol. 56, No. 5 (1996), pp. 479–86. 47. Sen Lin, ‘A New Pattern of Decentralization in China: the Increase of Provincial Powers in Economic Legislation’, China Information, Vol. 7, No. 3 (1992–1993), pp. 487–508, and Jean Oi, ‘Fiscal Reform and the Economic Foundations of Local State Corporatism in China’, World Politics, Vol. 45, No. 1 (1992), pp. 99–126. 48. Andrew Mertha, ‘China's “soft” Centralization: Shifting Tiao/Kuai Authority Relations since 1998’, China Quarterly, No. 184 (2005), pp. 791–810. 49. See Naughton & Yang, Holding China Together. 50. George J. Gilboy, ‘The Myth Behind China's Miracle’, Foreign Affairs, July/August 2004. 51. ‘China tops investment destinations’, China Daily, 23 September 2004. 52. For the importance of FDI to the Chinese political economy, see Mary Gallagher, ‘Reform and Openness: Why China's Economic Reforms have Delayed Democracy’, World Politics, Vol. 54, No. 3 (2002), pp. 338–72. 53. ‘Foreign Investment in China, 2004’. 54. Thun, ‘Industrial Policy, Chinese-Style’. 55. Kevin P. Lane & Ian St-Maurice, ‘The Chinese Consumer: To Spend or to Save?’, McKinsey Quarterly, No. 1 (2006), online edition. 56. Gilboy, ‘The Myth Behind China's Miracle’. 57. Ibid. 58. See ‘China's MII allocating 700 mln yuan to TD-SCDMA developers’, AFX European Focus, 23 August 2004, and ‘Can TD-SCDMA make a big splash?’, Business Daily Update, 29 June 2004. 59. ‘Siemens to Invest $310 Million in Asia for Wireless’, The Industry Standard, 5 July 2001. 60. ‘Siemens, China's Huawei to set up 3G Joint Venture’, Asia Pulse, 13 February 2004. 61. ‘Siemens aims to become leading 3G equipment vendor in China’, Business Daily Update, 18 May 2004. 62. ‘Official Urges China to Develope own standards for IT Sector’, China Online, 22 June 2000. 63. For an industry perspective on this strategy, see Paul Lee & Victor Long, Changing China: Will China's Technology Standards Reshape your Industry? (Deloitte & Touche, 2004). 64. Steve Pain, ‘China's influence will shape future technology’, Birmingham Post, 10 August 2004, p. 18. 65. Carolyn Ong, ‘China bids for bigger role in global hi-tech agenda’, South China Morning Post, 16 March 2004, p. 2. 66. ‘WAPI accepted by more chip makers’, SinoCast, 17 February 2004. 67. See Ichiro Araki, ‘China and the Agreement on Technical Barriers to Trade’, in Deborah Cass, Brett Williams & George Barker (eds), China and the World Trading System (Cambridge University Press, 2003). 68. Keith Bradsher, ‘Bayer Agrees to Charge Government a Lower Price for Anthrax Medicine’, The New York Times, 25 October, 2001, p. B8. 69. Steve Lohr, ‘U.S. wants China to yield on its Standard for Wi-Fi’, International Herald Tribune, 5 March 2004, p. 22. 70. Elizabeth Becker, ‘China is praised for preserving global wireless standard’, International Herald Tribune, 23 April 2004, p. 15. 71. Authors' interview with Intel executive, June 2005. 72. Sumner Lemon, ‘WAPI supporters ready a last stand in China’, Network World, 8 March 2006. 73. Mike Clendenin, ‘WAPI battle exposes technology rifts with China’, EE Times, 17 March 2006. 74. Bharatendu Srivastava, ‘Radio Frequency ID Technology: The Next Revolution in SCM’, Business Horizons, Vol. 47, No. 6 (2004), pp. 60–8, and Gaetano Borriello, ‘RFID: Tagging the World’, Communications of the ACM, Vol. 48, No. 9 (2005), pp. 34–7. 75. Bien Perez, ‘RFIDs keep tag on clothes all the way to wardrobe’, South China Morning Post, 18 March 2003, p. 4. 76. Ted Fishman, China, Inc.: How the Rise of the Next Superpower Challenges America and the World (Scribner, 2005). 77. ‘China seeking to establish supply chain tracking technology standard’, Xinhua Financial News, 19 January 2004. 78. ‘RFID standard to revolutionize manufacturing’, Financial Times Information, 3 February 2004. 79. ‘Asian partners set the standard’, South China Morning Post, 26 October 2004, p. 1. 80. Craig Harmon & Leslie Downey, ‘RFID: Will China Throw a Monkey Wrench?’, Business Week Online, 12 September 2005. 81. Harmon & Downey, ‘RFID: Will China Throw a Monkey Wrench?’. 82. Harold Clampitt, ‘RFID and China’, RFID Journal, 8 August 2005. 83. Jonathan Collins, ‘Sparkice and iPico form Chinese Venture’, RFID Journal, 14 November 2005. 84. See, for example, David Levi-Faur, ‘The Global Diffusion of Regulatory Capitalism’, Annals of the American Academy of Political and Social Science, Vol. 598, No. 1 (2005), pp. 12–32. 85. For an overview, see Mark Thatcher & Alec Stone Sweet, ‘Theory and Practice of Delegation to Non-majoritarian Institutions’, West European Politics, Vol. 25, No. 1 (2002), pp. 1–22. 86. See Anne-Marie Slaughter, A New World Order (Princeton University Press, 2004); Virginia Haufler, A Public Role for the Private Sector: Industry Self-Regulation in a Global Economy (Carnegie Endowment for International Peace, 2001); and David Held & Anthony G. McGrew (eds), Governing Globalization: Power, Authority, and Global Governance (Polity Press, 2002). 87. Pearson, ‘The Business of Governing Business in China’. 88. Examples of this include David Vogel, National Styles of Regulation: Environmental Policy in Britain and the United States (Cornell University Press, 1986) and Robert A. Kagan, ‘Should Europe Worry about Adversarial Legalism?’, Oxford Journal of Legal Studies, Vol. 17, No. 2 (1997), pp. 165–83. 89. For the former, see Morris & Ferguson, ‘How Architecture Wins Technology Wars’. For the latter, see Mattli & Büthe, ‘Setting International Standards’.

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