1. Chinas Industries Preliminaries: industry characteristics The new industries Adjusting: the established industries How far has China come? Current Trends

4. The New Industries Some well known patterns Excess entry (Klepper et al) Shake-out/escalation (Klepper, Sutton, etc.)

5. 20 0 80 60 40 20 10 0 80 60 40 20 Fridges 200 80 60 40 20 100 80 60 40 20 W/Machine s

6. 100 90 80 70 60 50 40 30 20 10 Color TVs 78 9 80 1 2 3 4 5 6 7 8 9 90 1 2 3 4 5 6 7 8 9 00 1 2 3

7. The Established Industries Cement Steel Clothing Machine Tools Beer

8. Cement High Transport Costs Segment Market Regulatory Regime Strengthens This A Quiet Life … The BBMG Company A Turnaround at Sunnsy

9. Clothing and Textiles Key to Turnaround is Not Privatisation but Permission to Export Directly (Lanyan) Hangsu in Silk: Capability Building and Direct Exporting Ever Glory: Fast Growing Private Firm

10. Steel Slow but Steady Technical Progress Key Role Played by Equipment Suppliers (Jiangsu link with Fuchs) Joint Ventures: Jiangsu with Posco (Korea) Still High Volume Moderate Quality… with a Large Fringe of Small Producers

11. Machine Tools Slow but Adequate Adjustment Towards CNC Machines Transition Cushioned by Profits from Conventional Machines Joint Ventures Established over Past Few Years are Building Capability in Advanced CNC Machines (Dalian Company with Index of Germany etc.)

12. Beer First Moves towards Classic Pattern become Evident Interaction of Scale Economies and Advertising Foreign Stakeholders Move In

13. How Far Has China Come? Two Methods – 1. Benchmarking in Autocomponents 2. Trade Statistics by Product Line

16. Current Trends Seeking a Foothold: Air Conditioners for Saudi Arabia The Nineties see a Move in FDI Away from Low wage Seeking Towards the Pull of the Large Domestic Market. Illustration from DVD Market etc Chinese Firms seek Low Labour Cost Locations … Ever Glory … Making Fridges in Italy … A Reverse Process