Decentralized Engagement in Nonstrategic Industries
Decentralized Engagement in Nonstrategic Industries
This chapter applies the strategic value framework to case studies of nonstrategic industries (consumer electronics, foodstuffs, and paper) to show that decentralized engagement is the dominant regulatory pattern in low-tech, labor-intensive industries. Consumer electronics ranks the highest in strategic value among the nonstrategic sectors surveyed. Despite its low strategic value for national security applications and medium rank in contribution to the national technology base, the most high-tech subsectors, including microelectronics, produce inputs and have applications for strategic industries, including telecommunications and transportation. The state adopted a more deliberate orientation toward the development of indigenous technologies and domestic industry in these subsectors. The state has extensively liberalized market entry and business scope in foodstuffs. It has also taken an incidental orientation toward paper since paper production has miniscule applications for national security and makes a small contribution to China's national technology base.
Keywords: state control, industry regulation, liberalization, decentralized engagement, strategic value, consumer electronics industry, food industry, paper industry
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