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This paper examines how latecomer firms manage to achieve industrial upgrading through strategic coupling with global lead firms in automotive production networks. Drawing upon the example of the Guangzhou Automotive Corporation in southern China, this paper theorizes 'cross‐scalar tension' as a key factor to explain why the four cases of strategic coupling between lead firms, the same domestic firm and state ended in different results, from decoupling to a sustainable coupling with local upgrading. This paper contributes to the pertinent literature by demonstrating that cross‐scalar tension is inherent to the nature of global production networks, and unreconciled tension concerning different corporate strategies on technological transfer, localization and product development could lead to decoupling. Importantly, good coordination and matching on corporate strategies between lead and domestic firms could relieve cross‐scalar tensions, thus fostering local industrial upgrading and sustainable strategic coupling. [ABSTRACT FROM AUTHOR]

The conventional approach to examining firm-to-firm governance is unable to disentangle the complexity of strategies and the interplay between different actors with their corresponding rules and routines embedded within an institutional environment where the state plays as a key equity partner in joint ventures (JVs) in transitional economies. This paper proposes an analytical framework of hybrid governance to explain how an alignment of mutual interests between three groups of heterogeneous multi-scalar actors (states, local and foreign firms) facilitates technological upgrading in JVs and the establishment of local production networks in transitional economies. The case of Guangzhou Automobile Group (GAC) demonstrates how the divergent interests of various actors do not necessarily constrain the development of the JV. Under such hybrid governance, whereby the boundaries between public and private property are blurred, GAC's senior managers have been able to navigate and align the multifaceted agendas of various actors: from the profit-maximization demanded by foreign JV partners and industrial development commanded by the central state, to the development of the local capacity and capability for large-scale production and product development and setting up local automotive supply chains required by the local state. Three necessary conditions for technological upgrading in JVs are identified: a 50-50 equity structure, a latecomer in a big market, and the financial imperative of local firm actors. [ABSTRACT FROM AUTHOR]

To contribute to the debate on the importance of state vis-à-vis inter-firm competition in regional development, this paper examines a representative dataset of the relocation of manufacturing firms in Guangdong province of China with multinomial logistic regression models. To improve the competitiveness of manufacturing in the Pearl River Delta, the Guangdong government implemented pro-active policies to encourage the relocation of existing manufacturing firms to their designated industrial parks during the 2000s. Although the initial results appear to support the usefulness of relocation policy, further examination reveals its effectiveness depends on the industrial sector and profiles of the relocated firms. In fact, the relocation of large-scale labor-intensive firms is not driven by local government initiatives. The physical proximity of high-technology parks to airports/ports has a bigger impact on the relocation of small-scale locally-funded high-technology firms into designated parks. In the case of locally-funded firms in polluting sectors, they are expanding rather than relocating to designated industrial parks. The empirical evidence indicates the non-binary nature of the industrial relocation policy. The nuances of relocation policy and its multi-scalar effects on relocated firms rejects any simplistic generalization. [ABSTRACT FROM AUTHOR]

Based on semi-structured interviews with key stakeholders in Nanhai, this paper adopts an analytical framework to examine how a combination of infrastructure-pull, supply-push and demand-pull initiatives implemented by a small district government in southern China were able to facilitate socio-technical transitions to the public transport decarbonization through the establishment of hydrogen refuelling infrastructures, the adoption of fuel cell electric vehicles (FCEVs), and the development of production network on FCEVs. With neither massive investment from the central government nor captive linkage with global automakers, Nanhai out-performs other automotive powerhouses in China by accounting for 9.85 percent of FCEVs and 4.59 percent of all operating hydrogen refuelling stations in China, despite its land area only accounting for 0.01 percent of the country. The provision of hydrogen infrastructures and other pro-active local government initiatives (including financial incentives) facilitate the development of a competitive regionalized production network of about 90 (privately-owned) fuel cell electric buses makers and parts suppliers around the Xianhu Hydrogen Valley in Nanhai. This finding enhances our understanding on effects of (local) state policies on the socio-technical transitions to public transport decarbonization and the long-term development of hydrogen economies in other countries. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Through an examination of output efficiency of urban land use and its driving mechanisms, this paper aims to highlight the roles of inherent differences in development cycle and resource endowment and the need for a targeted revitalization policy in resource-based cities in China. Based on the Slack-Based Model-Undesirable through the Data Envelopment Analysis (DEA) and the Tobit model on panel data at the municipal level between 2000 and 2018, our analytical framework addresses the methodological concern of existing studies on the estimate of urban land use efficiency (ULUE) and its possible determining factors for 115 resource-based cities in China. Examination through the Tobit model suggests that it is more effective for the local governments of resource-based cities to improve their ULUE by investing in road networks and science and technology. The organic growth of urban land leads to rapid urbanization but is not necessarily conducive to the improvement of ULUE. Importantly, the stages of the development cycle and the geographical specificities of particular cities in terms of natural resource endowments and socio-economic structure is important to the level of ULUE of resource-based cities. Coal-based cities, and to a lesser extent, ferrous metal-based cities, are normally lower-tiered cities and have the highest level of dependency on the exploitation of natural resources, therefore, the government should not underestimate the difficulties to revitalize the economies of such resource-based cities. ● The spatial-temporal patterns of urban land use efficiency (ULUE) for 115 resource-based cities in China were examined by the Slack-Based Model-Undesirable through the DEA. ● The driving mechanisms behind ULUE were explored by the Tobit model. ● The heterogeneity of driving mechanisms was investigated by dissecting the sample into different segments. [ABSTRACT FROM AUTHOR]

Inter-regional capital flow is one of the critical factors affecting economic growth and regional inequality. This paper examines the impact of inter-regional investment from publicly listed companies on green total factor productivity (GTFP) in 215 cities and their green innovation mechanism between 2008 and 2018 in China. To address the endogeneity of inter-regional investment and GTFP, we adopted the opening of high-speed rail as the instrumental variable in the form of regression discontinuity design (RDD) and two-stage least squares (2SLS) estimates. Validated by five robustness and validity tests, our empirical results show that inter-regional investment significantly enhanced the local GTFP in the host cities. Moreover, the mechanism analysis shows that green patents had a significant mediating effect between inter-regional investment and local GTFP in the host cities. Specifically, green invention patents have had full mediation effects while the green utility model was not part of the transmission mechanism. Further investigation revealed that the effects of inter-regional investment on local GTFP were completely channeled through three categories of green invention patent: alternative energy production, transportation, and energy conservation, while another three categories of patent (waste management, agriculture/forestry, administrative, regulatory or design aspects) had partial mediating effects between inter-regional investment and GTFP. The decarbonization of polluting transportation and energy sectors is therefore a cost effective way to facilitate China's goal of carbon neutrality by 2060. • Inter-regional capital flow based on investment data of Chinese listed companies. • Analysis of the impact of inter-regional investment on GTFP based on RDD and 2SLS estimation. • Analysis of the transmission mechanism of seven types of green patents based on WIPO in inter-regional investments on GTFP. [ABSTRACT FROM AUTHOR]

The trajectories of the German and Chinese photovoltaic industries differ significantly yet are strongly interdependent. Germany has seen a rapid growth in market demand and a strong increase in production, especially in the less developed eastern half of the country. Chinese growth has been export driven. These contrasting trajectories reflect the roles of market creation, investment and credit and the drivers of innovation and competitiveness. Consequent differences in competiveness have generated major trade disputes. [ABSTRACT FROM AUTHOR]

Abstract: Based on the distribution patterns of the sub-branches and saving outlets of the Industrial and Commercial Bank of China and the Bank of China in prefectural cities in China between 2001 and 2009, this paper examines how these two Chinese state-owned commercial banks may centralize their operations and thus lead to the possible marginalization of the provision of basic banking services to low value-added customers. The restructuring of SOCBs may not result in high levels of layoff due to the state’s objectives of minimizing both operational costs and political risks. When the politically sensitive issue of (un)employment is not taken into account, the more economically developed cities with larger populations and the more developed telecommunication facilities experience a higher level of centralization of their banking operations. The centralization of banking operations in China is, however, not always at the expense of savings outlets, despite the merging of savings outlets with sub-branches in various Chinese cities. There is circumstantial evidence to suggest the convergence thesis is not applicable to the banking industry in China, which is different from the conventional argument in financial geography that the centralization and marginalization of banking operations are two sides of the same coin as in the restructuring of the Anglo-American banking industries. This difference could be due to the hybrid ownership structures of state-owned commercial banks in China where the boundaries between public and private property rights are blurred. [Copyright &y& Elsevier]

He C. and Yeung G. The locational distribution of foreign banks in China: a disaggregated analysis, Regional Studies. This paper examines the location choices made by foreign banks of different organizational form and size in China. Results from the conditional logit models suggest smaller foreign banks tend to pursue the 'follow-the-customer' strategy, while larger banks are likely to use the 'follow-the-competitor' strategy in China. The agglomeration effect is more important than the first-mover cities as a determinant of the location choices make by foreign banks in China. This finding could be partially explained by the location-bounded institutional variables that are unable to be fully reconciled with the recent deregulation policies. [image omitted] He C. et Yeung G. La distribution geographique des banques etrangeres en Chine: une analyse desagregee, Regional Studies. La presente etude cherche a analyser le choix d'emplacement des banques etrangeres en Chine en fonction de leur structure organisationnelle et de leur taille differentes. Les resultats provenant des modeles logit conditionnels laissent supposer qu'en Chine les plus petites banques etrangeres ont tendance a poursuivre la strategie de 'suivre le client', alors que les plus grandes banques sont plus susceptibles d'adopter la strategie de 'suivre le concurrent'. L'effet d'agglomeration s'avere plus important que ne l'est le phenomene du premier arrive dans les grandes villes comme determinant des choix d'emplacement des banques etrangeres en Chine. Ce resultat pourrait, du moins en partie, s'expliquer par des variables institutionnelles qui sont delimitees geographiquement et qui ne peuvent pas etre conciliees avec les politiques recentes de dereglementation. Banques etrangeres Choix d'emplacement Modele logit conditionnel Chine He C. und Yeung G. Verteilung der Standorte auslandischer Banken in China: eine disaggregierte Analyse, Regional Studies. In diesem Beitrag werden die Standortentscheidungen auslandischer Banken verschiedener Organisationsformen und Grossen in China untersucht. Aus den Ergebnissen konditionaler Logit-Modelle geht hervor, dass kleinere auslandische Banken in China meist eine Strategie des 'Dem-Kunden-Folgens' wahlen, wahrend grossere Banken meist auf eine Strategie des 'Der-Konkurrenz-Folgens' setzen. Der Agglomerationseffekt spielt als Determinant fur die Standortentscheidungen auslandischer Banken in China eine grossere Rolle als die Pionierstadte. Dieses Ergebnis lasst sich teilweise durch die standortgebundenen institutionellen Variablen erklaren, die sich nicht vollstandig mit den aktuellen Deregulationspolitiken in Einklang bringen lassen. Auslandische Banken Standortentscheidungen Konditionales Logit-Modell China He C. y Yeung G. La distribucion de ubicacion de los bancos extranjeros en China: un analisis desglosado, Regional Studies. En este articulo analizamos las decisiones de ubicacion tomadas por bancos extranjeros de diferentes formas de organizacion y tamanos en China. Los resultados de los modelos logit condicionales indican que en China los bancos extranjeros mas pequenos tienden a optar por la estrategia de 'seguir al cliente' mientras que los bancos mas grandes tienden a usar la estrategia de 'seguir a la competencia'. El efecto de aglomeracion desempena un papel mas importante que el de las ciudades pioneras para determinar las decisiones de ubicacion que realizan los bancos extranjeros en China. Estos resultados podrian explicarse en parte por las variables institucionales vinculadas a la ubicacion que no pueden reconciliarse totalmente con las recientes politicas de desregulacion. Bancos extranjeros Decisiones de ubicacion Modelo logit condicional China [ABSTRACT FROM AUTHOR]

The financial crisis indicates the underlying bankruptcy of the last of a series of attempts to restore sustained growth in advanced countries since the end of the post-war Golden Age: Italian flexible specialization, Japanese and Rhine-style lean production, the new economy and Anglo-American financialization. Over the same period a number of emerging economies and in particular China have sustained high rates of growth. In the years to come, developed country growth is likely to remain slow because no alternative high-growth model is on the horizon. A country such as China conversely has the potential to continue to grow relatively fast provided it can profoundly alter its model of development in ways that address global and national imbalances. If it and other large emerging economies do achieve further sustained growth, this will in effect reverse the gap created by industrial revolution, colonialism and imperialism. The aim of this paper is to explain the reasons for and the possibilities of such global convergence, paying particular attention to the reasons for and implications of the financial crisis and the extent to which China’s fiscal stimulus contributes to a new model of Chinese development. [ABSTRACT FROM AUTHOR]

Based on 287 of the largest clothing manufacturing firms in southern China in terms of output value, we employed data envelopment analysis to estimate the technical efficiency of the sample firms. A regression analysis was conducted to examine the effects of export orientation on technical efficiency. Our results suggest a U-shaped relationship between export ratio and technical efficiency. The specific nature of the industry in Guangdong province can explain that clothing firms with a high degree of sales in the domestic market or with a high level of export orientation experience a higher level of technical efficiency than those firms trying to conquer both the local and the overseas markets. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper investigates the role of the state in the liberalisation of the banking industry in China and the implications for the conventional convergence thesis of market segmentation and financial exclusion. I argue that the usefulness of the convergence thesis is constrained because it does not take region-specific institutional systems into consideration. This limitation is clearly illustrated by the experience of Chinese banking reforms. As China is still undergoing a series of institutional reforms to create a functioning market economy, the banking reforms implemented in China have created a ‘hybrid property’. ‘Hybrid property’ refers to a mixed public–private ownership structure that has been adopted for previously wholly state-owned commercial banks (SOCBs). This transformation of the property structure blurs the conventional boundaries between public and private property, while the state still plays an important role in the regulation and operation of these banks. I further argue that financial geographers have to account for the institutional path dependency of non-market economies and the consequent state response to public–private initiatives of ‘hybrid property’ in transitional economies. The ‘region-specific segmentation’ policy implemented by the Chinese state is a response to these public–private initiatives of ‘hybrid property’. Under this de facto rural–urban market segmentation policy, the state has to open up the banking industry to foreign banks in lucrative urban markets while maintaining much stronger control in rural areas to lower the level of financial exclusion. This intervention policy is inefficient but it is an acceptable compromise between the needs of corporate governance and private initiatives, and socio-economic and political stability in China. This is an indication of the institutional path dependency of the planned economy. Therefore, liberalisation in the Chinese banking industry and the resultant rural–urban market segmentation is spatially contingent on the public–private initiatives of ‘hybrid property’ in the transitional economy. [ABSTRACT FROM AUTHOR]

Based on interviews conducted in four major Chinese cities, this paper examines the determinants of lending by state-owned commercial banks (SOCBs) to manufacturing firms in China. The conventional relationship banking and transaction lending theories helps explain at least part of the lender-borrower relationship in China. The perceived lending bias against non-state-owned enterprises could actually be reconciled as rational decision-making by SOCBs, partly due to the higher risk involved and/or high transaction costs in the risk evaluation of such lending. The existence of unofficial lending criteria at SOCBs nonetheless provides golden rent-seeking opportunities for unscrupulous bankers to exploit the regulatory loopholes for financial gain. [ABSTRACT FROM AUTHOR]

Purpose - Based on a sample of foreign-financed manufacturing firms in southern China, the purpose of this paper is to study the effects of ISO certification on productivity. Design/methodology/approach - The paper employs the stochastic frontier approach to estimate frontier efficiency scores at firm level. Findings - The empirical results suggest that the implementation of ISO was able to improve firms' productivity in the form of a wholly disembodied shift of the production frontier. The results further show that there was a mildly positive embodied shift of the production frontier due to the effects of ISO on the marginal product of labor. However, the embodied effects of ISO on the marginal product of capital were not significant. Research limitations/implications - The sample size is small and the data were collected from southern China. A generalization of results to other parts of China should be interpreted with caution. Despite the limited degree of generalization, firms with ISO certifications are suggested to be aware of certain flexibility in the implementation of the ISO documented procedures. Practical implications - The findings of the paper should be of general interest to firms seeking or adopting ISO system or other international standards. Originality/value - The originality of the paper resides in the fact that the empirical work investigates the embodied effects of ISO certification on the marginal product of labor and capital. [ABSTRACT FROM AUTHOR]

Based on a representative sample of the 238 largest foreign-invested toy manufacturing firms in southern China by output value, we adopted a two-stage approach to examine the role of leverage on firm performance as measured by technical efficiency, and the effect of efficiency on profitability. In the first stage, we use data envelopment analysis (DEA) to estimate the technical efficiency of the sample firms. In the second stage, we conduct a regression analysis to study the effects of leverage on efficiency and of efficiency on profitability. Our empirical results support the view that leverage has a positive effect on firm technical efficiency and that there is a positive relationship between technical efficiency and profitability. [ABSTRACT FROM AUTHOR]

This article uses a ‘principal-agent-subagent’ analytical framework and data that were collected from field surveys in China to (1) investigate the nature and causes of the parallel trade in Coca-Cola between Shanghai and Hangzhou and (2) assess the geographic and theoretical implications for the regional monopolies that have been artificially created by Coca-Cola in China. The parallel trade in Coca- Cola is sustained by its intraregional rivalry with Pepsi-Cola in Shanghai, where Coca- Cola (China) (the principal) seeks to maximize its share of the Shanghai soft-drinks market. This goal effectively supersedes the market-division strategy of Coca-Cola (China), since the gap in wholesale prices between the Shanghai and Hangzhou markets is higher than the transaction costs of engaging in parallel trade. The exclusive distributor of Coca-Cola in the Shanghai market (the subagent) makes opportunistic use of a situation in which it does not have to bear the financial consequences of the major residual claimants (the principal and other agents) and has an incentive to enter the nondesignated Coca-Cola market of Hangzhou by crossing the geographic boundary between the two regional monopolies devised by Coca-Cola. The existence of parallel trade in Coca-Cola promotes interregional competition between the Shanghai and Hangzhou bottlers (the agents). This article enhances an understanding of the economic geography of spatial equilibrium, disequilibrium, and quasi-equilibrium of a transnational corporation's distribution system and its artificially created market boundary in China. [ABSTRACT FROM AUTHOR]

Based on field surveys conducted in Guangdong, Zhejiang and Beijing in 2000 and 2001, this paper argues that accession to the World Trade Organisation (WTO) by China will create a new competitive arena for different categories of textile and clothing firms located in that country, partly dependent on the size and ownership of the firm. From the perspectives of reducing import tariffs, eliminating export quotas and the regulations on trade disputes, WTO accession does matter for the majority of Chinese firms in this 'win-lose' game. From the perspective of compliance with international standards, this paper argues that accession to the WTO does not really matter for some Chinese firms, as they may not survive the intense competition prior to 2005, when the effects of the Agreement on Textiles and Clothing materialise. [ABSTRACT FROM AUTHOR]

Deals with a study of the managerial challenges for Chinese manufacturing. Literature reviews and research hypotheses; Methodology used in the study; World Trade Organization accession and managerial challenges; Conclusion.

Presents a study which examined the internalization approach to joint ventures, citing the application of the internalization theory on the multi-national corporation (MNC), Coca-Cola in China. Reasons for the selection of Coca-Cola as subject for the study; Entry mode choices of MNC; Attraction of foreign direct investments to China after its implementation of economic reform in 1979.

Given the limited capabilities of R&D and global distribution channels, and the virtual non-existence of patented drugs, the Chinese pharmaceutical industry has little chance to enter the global market of Western prescription drugs and compete with the established global giants head-on. The reality is that they are chasing a moving target and their competitors are becoming bigger and stronger day by day. The substantial reduction of import tariffs and the granting of comprehensive trading and distribution rights to foreign-financed firms following WTO accession, effectively tilted the level-playing field against the Chinese pharmaceutical industry. Given the short-term competitive advantages of the Chinese pharmaceutical industry on Chinese drugs, three development strategies are suggested: (1) consolidate the local market of herbal and generic drugs; (2) market Chinese drugs via the Internet; and (3) outsource R&D and collaborative marketing. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper presents a case study of two large firms which emerged from among the ranks of traditional state-owned enterprises and new entrants: Shougang (steel) and Sanjiu (pharmaceuticals). Rather than being irreconcilable with the market economy, the experience of these two firms suggests that the Chinese Communist Party and the People's Liberation Army possessed a rich legacy of organisational and motivational skills. Moreover, Shougang and Sanjiu both grew rapidly through mergers and acquisitions in the absence of privatisation and a developed stock market. Furthermore, the main reason for Shougang and Sanjiu's success is not special help from the government or the army, but rather the fact that its leadership used their autonomy to construct a highly effective business organisation. [ABSTRACT FROM AUTHOR]

Based on 26 case studies, this paper investigates the socio-economic causes of the inflow of FDI and its policy implications in Dongguan. The favourable factors for foreign investors in Dongguan can be categorised under the Dunning's OLI (ownership, locational and internalisation advantages) framework. This paper argues that factors other than policy incentive, such as sub-contractual and pseudo integration, are playing more important roles in attracting the inflow of FDI and maintaining the high level of economic growth in Dongguan. This finding questions the effectiveness of policy incentives, such as tax-breaks, implemented by the Government as a means to attract FDI in Dongguan. The existence of 'Chinese crony capitalism' calls for further improvement in the implementation of laws and regulations in Dongguan and the reduction of bureaucratic red-tape by the central and local governments. [ABSTRACT FROM AUTHOR]

Based on panel data for 113 municipal cities between 2000 and 2017, we examined the spatial-temporal patterns of the output efficiency of logistics land use and its possible determinant factors in the Yangtze River Economic Belt (YEB) of China. The stochastic frontier analysis revealed that the average annual value of logistics land use efficiency (LLUE) in the YEB increased from 0.547 in 2000 to 0.655 in 2017. The Tobit model revealed that all the explanatory variables had positive and significant relationship with the LLUE, with the exception of the tertiary sector and informatization. Importantly, Tobit models of three sub-samples revealed various development stages in the logistics industry across space: downstream cities may reach the plateau of LLUE through organic growth, while an increase in the land supply for logistics use could still be associated with an improvement of the LLUE of a logistics industry located upstream. Finally, we deduced that the inflection point of LLUE for organic growth in logistics land use in the YEB could be between 0.59 and 0.69 during the study period (or between 0.64 and 0.73 in 2017). It is inefficient for urban planners to increase land zoning for logistics use to pass the point of positive marginal return to the economy. • Based on panel data for 113 municipal cities between 2000 and 2017, spatial-temporal patterns of logistics land use efficiency (LLUE) and its driving mechanism in the Yangtze River Economic Belt (YEB) of China were examined by the stochastic frontier analysis and the Tobit Model. • Various development stages in the logistics industry across space were investigated using Tobit models of three sub-samples. • The inflection point of LLUE for organic growth in logistics land use in the YEB was further deduced. [ABSTRACT FROM AUTHOR]

Abstract: This paper draws on trade data to examine the degree of upgrading of China’s trade structure with the world as a whole and in particular with the European Union (EU). More specifically it examines the evolution of the industrial structure of China’s trade with the world and with the EU between 1996 and 2008 and of the underlying dynamic indicators of revealed comparative advantage. This method of analysing China’s industrial structure provides clear evidence of upgrading into more advanced industries without at present losing significant competitive advantage in industries employing unskilled workers. The examination of revealed comparative advantage indices for world and Sino-EU trade also indicates an increasingly high degree of interdependence between the EU and China between 1996 and 2008. The EU (especially Germany, the UK, and France) is China’s most important export market, though it is also much more important as a market for China’s exports than the EU is as a supplier for China. China’s consequent trade surplus with the EU has gradually shifted from textiles and clothing to machinery and furniture. Further investigation reveals that the complementary Sino-EU bilateral trade is moving towards intra-industry trade at the 4-digit level of HS (Harmonization System) commodity classification. Although China is still a ‘global sweatshop’ with a strong specialization in labour-intensive commodities produced for economically developed countries (by importing machinery, raw materials and exporting processed goods), there are signs of technological upgrading in number of selected sectors in China, noticeably electronics, computers and telecommunications equipment. China’s reliance of imports of minerals indicates however that energy and resource security could be an important constraint on China’s long-term economic development. [Copyright &y& Elsevier]