The Structure of the Dissertation

The dissertation consists o f eight chapters. Chapter 2 elaborates the theoretical justification and analytical framework which underpins the research. It addresses the key theoretical

debates on the emergence of micro-region. It also seeks to develop the concepts of network

and governance, and to show how they can usefully be applied to analyse the fluid governance between SNGs and firms, and in intra- and inter-firm relations. Chapter 3 presents an overview o f the discussion of globalisation and régionalisation in East Asia and examines the patterns and processes of China’s micro-regional reintegration with the global economy on the basis of a synthesised statistical database. It gives special attention to the emergence of regional variations (i.e in terms of industrial agglomeration) in Guangdong (especially in the Pearl River Delta and Dongguan).

Chapters 4, 5, 6 and 7 present case studies of the emergence of micro-regionnalisation

among Guangdong, Taiwan and Japan. Chapter 4 investigates Je jure processes of China’s

micro-regionalisation in the context o f domestic régionalisation (the rescaling of political economy), including economic reform, open door policies and regional development, all of which have been promoted in combination with vertical state-led institutionalisation. This chapter seeks to demonstrate that the features of Chinese domestic governance reform embrace a multi-level approach which has enabled the emergence of SNGs as economic actors. Although the political and economic foundations of SNGs are largely determined by the institutionalisation processes led from the centre, in addition decentralisation, regional discrimination policy, and de-ideologisation have impacted on the increasing economic autonomy of SNGs. In particular, as Guangdong has offered various types of preferential treatment to firms, it has become the most successful administration in terms of the increasing scope and scale of foreign economic relations. Therefore, institutionalisation from above has supported the policy environment and helped the SNGs to emerge as key economic actors in cross-border micro-economic relations.

Chapter 5 analyses key aspects of the international context o f micro-regionalisation, the

features o f the production networks o f Japanese electronics firms (keiretsu), Japanese FD1

in East Asia, and evolution of the Japanese production system. The chapter agues that the actual integration processes in East Asian régionalisation are developing below the state level according to the strategies o f Japanese MNCs’ international, regional and hiererachical division of labour, which is in turn bound to CPNs and ICCs. Chapter 6 focuses on the regional (Taiwan Strait) context of micro-regionalisation. There is a focus on the features of the Taiwanese production system in the electronics industry (small and medium firms, complementary inter-firm relations, government support of these relations, and relations with Japanese firms located in Taiwan). Chapter 7 considers the operation and structure of micro-regionalisation. The Hong Kong-Guangdong link offers a pioneering, basic model of cross-border production relations (originally these were PTAs). The discussion seeks to show how Chinese SNGs and firms have established networking arrangements through intermediary organisations, especially in the case of Dongguan. Finally, Chapter 8 summarises the major findings of the thesis and its contribution to the understanding of how micro-regionalisation among Guangdong, Taiwan and Japan through electronics investment and production activities has developed and how it operates in the

context of globalisation It also aknowledges the limitations of the present research and stresses the need for further research in the future.

1 ‘East Asia’ in this thesis refers to Japan, the NIEs (Newly Industrialising Economies: South Korea, Taiwan, Hong Kong and Singapore), the ASEAN 4 (Thailand, Malaysia, Indonesia, and Philippines) and China 2 The definition o f the area o f the Pearl River Delta varies For example, Wang Yueiu defines the Pearl River Delta as consisting o f Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Zhongshan, Dongguan, Huizhou, Huiyang, Boluo, Zhaoqing, Sihui and Gaoyao See Wang (1997: 15). Johnston (1999) lists Guanzhou, Panyu,

Shenzhen, Zhuhai, Huizhou, Dongguan, Zhongshan, Jiangmen, Foshan, Nanhai, and Shunde Dongguan

Tongji Nianjian 2000 (hereafter D7iV) defines the area of the Pearl River Delta on the basis of data for 12 cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Zhaoqing, Jiangmen. Dongguan, Zhongshan, Shunde, Nanhai and Panyu This dissertation refers to the phenomenon o f industrial agglomeration, especially in Shenzhen and Dongguan Thus the variations o f definitions o f the area do not obstruct the purpose of the research However, because o f the limitations o f the available data, the area is here taken to

include the 12 cities (as listed in DTN 2000).

3 Wang (2001a) discusses the governance o f cross-border economic linkages between Taiwan and China, focusing on the alliance between local bureaucrats and Taiwanese firms as well as the emerging industrial networks Kwok (1995) identifies regional transnational production networks in East Asia and Guangdong Sum (1999) points out the emergence of central-provincial-local entrepreneurial networks in China

4 The term ‘micro-regionalisation’ is used here to denote the scale o f cross-border regional activity that depends primarily on inter-firm and intra-firm economic relations, and can be distinguished from the broader ‘macro’ (East Asian) and meso’ (sub-East Asian) levels that depend more on overtly political initiatives (see Chapter 2).

5 ‘China’ refers to the People’s Republic o f China (PRC) Although the PRC claims that Taiwan is a part o f China, in this dissertation Taiwan refers to the territories governed by the Republic o f China (ROC)

6 See Section I 4 in this chapter, and on the concept of governance’ and related theoretical arguments see Chapter 2

7 For further theoretical discussion of the concepts of cross-border production networks and commodity chains see Chapter 2

8 For further discussion of the processing trade, see Chapter 3

9 For example, in 1993 the amount of contracted FDI was $US 1114 billion but the utilised FD1 was only $US 27.5 billion See Mitsubishi (2001: 506).

10 Renun Ribao, http://j people ne jp/2001/04/03/jp20010403-4253 html 11 The figures are based on value

12 The figures are based on value 13 The figures are based on value " The figure is based on value

CHAPTER 2