ABSTRACT
Economic reform in China in the past two decades has impinged upon Chinese industry in a number of ways. First, has been the remarkable policy shift in emphasis from heavy to light industry to cope with rising consumerism. Second, increased decentralisation of industrial management, including price liberalisation, has triggered wide-ranging inter-industrial readjustments and led to severe restructuring difficulties in major industries. Third, the influx of new industries from abroad in response to inexorable rising demand is something totally alien to the conventional Soviet-style industrial setting of pre-reform China. Fourth, but not least, has been the rapid build up of pressures for technological upgrading and the transfer of new industrial technology from overseas, in response to enhanced international competition.
