Foreign Direct Investment in China's High-technology Manufacturing Industries

Mary E. Lovely, Zixuan Huang

Research output: Contribution to journalArticlepeer-review

14 Scopus citations


This paper provides a survey of foreign investment activity in China's high-technology manufacturing industry. In addition, we closely examine the relationship between industrial policy, foreign investment and China's high-technology export success using the development of an indigenous integrated circuits industry as a case study. This paper finds that China's efforts to raise the productivity and innovative capacity of indigenous enterprises is consistent with rising domestic shares of high-technology assets and profits. Nevertheless, foreign-funded enterprises remain the source of most high-technology manufactured exports, primarily from wholly foreign-owned firms. In sum, despite indigenous development, Chinese high-technology manufacturing and exports remain deeply tied to foreign investment.

Original languageEnglish (US)
Pages (from-to)104-126
Number of pages23
JournalChina and World Economy
Issue number5
StatePublished - Sep 1 2018


  • China
  • exports
  • foreign investment
  • high-technology manufacturing

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance


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