The Introduction sets the argument about which type of firms is driving China’s technological development in high-technology sectors. Hybrids are ethnic Chinese, foreign-invested firms that are the hidden dragons driving China’s technological development due to their combination of a commitment to developing China and strong links to foreign finance. They are hidden because they are not widely recognized as a distinct category of firms by the Chinese state and analysts of China’s economy. Standing in sad contrast to them, China’s domestic firms are the paper tigers. They have been the targets of the government’s state-run financial system and industrial policies, celebrated and feared in equal measure by foreign analysts. Yet the images of the technological prowess of these firms are by and large more fiction than fact, as this book demonstrates. Multinational corporations meanwhile contribute something to China’s technological development, but are not as committed to China as the hybrids.
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