The Trajectory of China’s Industrial Policies

Barry Naughton, Siwen Xiao and Yaosheng Xu

Institute on Global Conflict and Cooperation, Working Paper Series from Institute on Global Conflict and Cooperation, University of California

Abstract: China’s industrial policy does not fit well into traditional concepts of industrial policy, and even clear definitions of China’s industrial policy are rare. Everybody seems to agree that China has an aggressive industrial policy, but there is surprisingly little discussion about what that industrial policy is. To some extent, this is because China’s industrial and technology policies have been in a constant state of flux since the mid-2000s. In this short piece, we situate Chinese industrial policy and then argue that most of the process of restless change can be incorporated into a trajectory of two dimensions: first, the build out of a policy/planning mechanism; and second a shift in the ultimate objective of technology and industry polices from economics to security. We argue that these two simple features are robust enough to bear the weight of most characteristics of Chinese industrial policy. We then discuss the most recent phase of China’s industrial policy, characterized by a focus on security and new implementing instruments such as the “new-style national team” and the strengthening of the “national strategic science and technology force” (NSS&TF). These are clearly the culmination of the trends described earlier. Since there is still much we do not know about these very recent innovations, longer-run trends are invaluable in suggesting a hypothetical framework for current institutions.

Keywords: Social and Behavioral Sciences; industrial policy; China; science; technology; and innovation; national security (search for similar items in EconPapers)
Date: 2023-06-02
New Economics Papers: this item is included in nep-cna and nep-mac
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