Inter-area/Border Crossing

Organized Panel Session

2 - Varieties of Glocalization: Sub-National State Capitalism and Supplier Network Development in the Chinese Auto Industry

Friday, March 23
10:30 AM - 12:30 PM
Location: Jefferson, Mezzanine Level

Within the globalizing economy, both developed and developing countries want to climb the global production ladder. Industrial upgrading poses particularly strong challenges for developing countries that are simultaneously building state capacity and institutional foundations for market liberalization—especially in the case of China. This paper investigates how Chinese sub-national governments and their protégé state-owned enterprises (SOEs) have channeled global economic forces into their local economy through their collaboration or competition with foreign companies, and determines what variables influence different governments’ capacity to do so—hence the title, Varieties of Glocalization. This paper adopts a sectoral analysis of China’s burgeoning automotive industry and examines the varying modes of supplier network development within different automotive JVs between Chinese SOEs at the sub-national level and global automakers from different countries. The sectoral focus provides a venue to demonstrate the interplay of international rules of the World Trade Organization, national industrial policy, and sub-national implementation in the supplier network development and industrial upgrading. Through the case studies of Tianjin Toyota, Beijing Hyundai and Shanghai GM, the paper investigates how the national origin of multinational companies as well as unfolding administrative and corporate reform affect the relationship between Chinese and foreign partners within a JV. This paper hopes to bring attention to the increasingly important topic of sub-national state capitalism, and sub-national strategy for industrial upgrading and integration into the global economy.

Send Email for Seung-Youn Oh


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2 - Varieties of Glocalization: Sub-National State Capitalism and Supplier Network Development in the Chinese Auto Industry



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