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, USIn 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.

Using a rich accumulation of research, the authors lay out a simple microeconomics framework to explain how Chinese industries have developed, aided by vertically disintegrated value chains and utilization of technology and transaction platforms. Case studies of specific industries - including electronics, automobiles, coal and energy, agriculture, finance, and pharmaceuticals - contribute to the comprehensive and timely analysis.

This book will appeal to scholars and students of industrial development, industrial organization, and development economics, as well as Chinese and Asian studies.

Contributors: Y. Asuyama, K. Ding, H. Hoken, N. Horii, K. Kimura, T. Marukawa, M. Ohara, J. Pan, M. Watanabe, M. Yamaguchi