How does China build globally competitive industries? Why has the same political and economic system produced world-leading firms in some industries while falling short in others? This course examines the relationship between business and the state in contemporary China, asking how political institutions, industrial policy, corporate strategy, and global markets interact to shape economic outcomes. Rather than treating firms as passive recipients of government support, we examine how companies interpret political signals, mobilize public resources, build capabilities, and compete domestically and internationally.
Through the lens of the energy and technology sectors, the course explores how central priorities are translated into local implementation, how finance and ownership shape industrial development, how firms build political and organizational capabilities, and how global value chains, export controls, and geopolitical competition are reshaping corporate strategy. Along the way, we evaluate competing explanations for China’s industrial rise, including developmental-state theory, state capitalism, national innovation systems, corporate nonmarket strategy, and global value-chain governance.
Throughout the course, students return to a central question: where is industrial advantage actually created? Is it found in national planning, provincial competition, the capabilities of firms, or the structure of global production networks? By comparing these perspectives against evidence from industries including solar, batteries, electric vehicles, semiconductors, and the electric power system, students will develop a deeper understanding of China’s political economy and the strategic choices facing governments and firms operating within it. Selective comparisons with Japan, South Korea, Taiwan, and Southeast Asia sharpen what is distinctive about the Chinese case.
Sessions are taught as interactive discussions with some cases deployed when useful. The module presumes no prior coursework on China and is designed for students headed to government, business, finance, or multilateral institutions.