ABSTRACT
The ultimate goal of the big business and SME strategies was to achieve export competitiveness through increasing production scale and establishing a value chain from upstream to downstream of the ICT industry in China. The second role of the government described by Hu Qili was also developed according to this central objective. Hu explained that China’s ICT industry needed to ‘integrate its domestic market to the international one’. By developing the domestic market and improving product features and quantity, the ICT industry could not only satisfy domestic demand, but also achieve some degree of scale production. China could also utilize its own comparative cost advantages to explore foreign markets (‘walking out’, zouchuqu) and occupy a position in the international market.1 Hu Qili also emphasized ‘to stimulate the internal growth through external (exogenous) factors’ (‘attracting in’, yjnjinlai). He said that China should utilize foreign investment, markets, technology, human resources and management expertise to build the foundation of China’s ICT industry, and to increase scale expansion, R&D activities and levels of innovation, so as to accelerate the growth of the industry (Hu 1993).
