Enter the Dragon: China's Computer Industry

28 Computer Enter the Dragon: China’s Computer Industry C hina’s shift from technological nationalism to a more pragmatic strategy of developing national capabilities in conjunction with multinational corporations has transformed its economy. Consistent with this transformation, China has revamped its industrial and technology policies, moving from an isolationist approach aimed at achieving technological independence to become a major producer of computer hardware and a major market for information technology products. In 1990, China had only 500,000 PCs in a country of more than 1.2 billion people. By 2000, mainland Chinese purchased more than seven million PCs in a single year. During the same time, China’s production of computer hardware grew from less than US$1 billion to US$23 billion. China’s policies clearly drew on the developmental approach of other AsiaPacific economies such as Japan, Korea, Taiwan, and Singapore. Each of these became leaders in different segments of the global computer industry through the strong support of government industrial and technology policies.