From defensive to aggressive strategies: the evolution of economic nationalism in China
The chapter shows that while liberalism seems to have dominated China’s integration with the world economy, economic nationalism continues to play a significant role. With three distinct periods of opening and reform, the chapter demonstrates that economic nationalism in China has undergone three phases, which reflects gradual transition from a “defensive” phase, shielding the domestic market from foreign competition, to the present “aggressive” phase, venturing into the global market. The chapter points out that that the origins, forms of presentation, and themes of economic nationalism have been constantly changing while gradualism allowed the Chinese state to make proactive adjustments to institutions and cushion the negative impact of integration. In each of the three phases, economic nationalism is examined conceptually and empirically in terms of an ideology of the state, as industrial policies, and as industrial strategies of the individual firms.
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