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A handful
So will china become the next technology superpower? Actually, probably not- at least, not anytime soon. Its successes so far are restricted to a handful of firms, most are eithrer protected or exceptional, rising through cracks in China's planned economy. On December 10th, at a seminar in Beijing on Chinese technology organised by china Economic Quarterly, a research poblication, Ming Zeng, a professor at Insead, near Paris, and Beijing's Cheung Kong Business School ( and a noted optimist on Chinese firms) admitted:" I spent five years hunting for examples of successful high-tech companies in China. After all that work, I can only find three or four."
Overall, China's technology base remains limited and the capital infrastructure needed to produce advanced, high-tech goods largely absent. And while more and more high-tech goods are made in China, almost all the value is being captured by foreign companies . Writing in the quarterly, Daniel Rosen, a visting fellow at the Institute for International Economics in Washington, DC, argues that, on close inspection, "China's high-tech exports turn out not to be so very high-tech-nor, indeed, very Chinese".
Of $325 billion of exports in 2002, China's Ministry of Commerce rated only 20% as genuinely high-tech. And those were mostly mature commodities, such as DVD players and laser printers. The brains of these machines, namely their semiconductor chips, were almost all imported-reflected in China's high-tech trade deficit of around $15 billion. What's more, 85% of its high-tech exports between January and August 2003 were accounted for by foreign enterprises in China. |
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