The Disintegration of Production

Firm Strategy and Industrial Development in China

Edited by Mariko Watanabe, Faculty of Economics, Gakushuin University, Tokyo, Japan

In the past two decades, China has experienced rapid industrial and economic growth. This fascinating book explores the unique Chinese business strategy of vigorous market entry and low prices, which has been the key feature of this accelerated industrial growth.

‘It is a conventional belief that the Chinese industrial economy is dominated by large state-owned enterprises closely connected with political power. While this perception is correct for some industries, such as petroleum refinery, this fascinating book, edited by Mariko Watanabe, presents us with a vivid picture of another side of the economy, where smaller enterprises specializing in separate modular products compete with each other on the basis of a common platform, contributing to its dynamism. The book combines fresh theories and hypotheses, derived from intimate field work, with empirical testing. This is certainly an eye-opening work for everyone interested in the future of the Chinese economy.’
– Masahiko Aoki, Stanford University, US

‘In short, The Disintegration of Production is important reading for all who are interested in understanding the rise of China as a manufacturing power. While questions remain as lo whether and how Chinese firms will make the transition into higher value-added activities, the cogent theoretical framework and rich empirical detail of the book provide an important contribution to the debate.’
– The Developing Economics