china Jcase WD klkhd 92494 1 NATIONAL COMPUTER POLICY AND DEVELOPMENT IN CHINA Kenneth L. Kraemer Jason Dedrick Working Paper PAC-060A Center for Research on Information Technology and Organizations Suite 320, Berkeley Place University of California, Irvine Irvine, CA 92717 Tel: 714-856-5246 Fax: 714-856-8091 Internet:
[email protected] © 1994, CRITO china Jcase WD klkhd 92494 2 NATIONAL COMPUTER POLICY AND DEVELOPMENT IN CHINA1 I. INTRODUCTION2 Economic reforms of the past fifteen years have transformed China from a centrally- planned socialist economy to a mixed market system. The government has introduced market incentives for farmers, put state enterprises on a more commercial basis, given more authority to enterprise managers and opened the economy to more foreign investment in order to create what it calls a "socialist market" economy. These reforms have already produced high rates of growth in output and exports, especially in the coastal areas which are involved most heavily in export-oriented manufacturing. Economic reform in China has been accompanied by a similar shift in technology policies away from the nationalistic strategy of self-reliance which prevailed until the 1980s. The government has moved to a more pragmatic strategy of importing advanced technology and directing domestic technology development toward commercial purposes. This shift is driven by economic necessity, as China realizes it must upgrade its technology rapidly to compete internationally. It is also made easier by the end of the Cold War and the fall of the 1 The authors gratefully acknowledge the assistance of the following people who participated in interviews and/or reviewed this manuscript: Joseph Lin, Clement Zhang, Saiman Hui, Hsu Kung-Shih, Yang Tian- xing, Wu Jaipei, and Zheng Youjing, Chen Zhaoying.