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By reviewing all previous significant policies and institutional changes, and efforts made by the Chinese central government both domestically and regionally, the research approach to this thesis utilizes a historical approach for understanding the growth route of China‘s ICT industry. It is important to use a historical approach particularly when analysing institutional changes, as most institutional arrangements are the results of evolution over a long period of time (Putnam 1993). By recognizing the crucial role played by the Chinese central government in making policies and regulations, it is necessary to have as much historical knowledge as possible about changes in the Chinese government‘s efforts. For this reason, the thesis gathers as much relevant information as possible about all previous significant ‗Institution Reforms‘ and ‗Industry Plans‘. China‘s government introduces these reforms and plans with the intention of accelerating and strengthening the ICT industry‘s development. The historical approach is also applied to analyse the Chinese central government‘s

intentions at the regional level, which show the Chinese government not only strengthens ICT industry development within domestic governmental and institutional levels, but also tries to create a favourable regional environment for ICT industry development at a regional level by official diplomatic means. All relevant evidence including policy changes, institutional changes and new elements in industry plans have been carefully collected from the Chinese Government‘s ‗White Book‘, ‗Year Book‘ and official governmental websites. Information about Chinese active behaviour at regional and international levels derives from official declarations, official agreements and publications on various official websites. Moreover, personal interviews were conducted to obtain more detailed information in addition to that in official publications.

A dialectic approach is taken for exploring the impact of China on EARPNs with specific reference to the ICT industry. The dialectic approach to this topic emphasizes the process-led character of understanding the changing process of China‘s ICT industry as well as the changing role of a rising China. In this dynamic mixture, it cannot simply be assumed that the tremendous impact brought about by a rising China would lead to the result that China has already undoubtedly become a leading goose in East Asia. Moreover, the relationships between China and other East Asian countries cannot be understood by looking at the two individually. To analyze the impact brought about by a rising China necessitates looking at both China‘s intentions and other East Asian countries‘ responses. In addition, other factors include changing international economic backgrounds and interference from the US. In short, the relationships between a rising China and other East Asian countries that transcend the sum of the two individuals‘ motivations, actions and behaviour.

Both qualitative investigation and quantitative analysis will be used in this thesis, with a stronger reliance on qualitative investigation. Qualitative analysis will be applied when it comes to evaluating the impact of the Chinese government‘s regional intentions and the Chinese ICT enterprises‘ overseas behaviour in EARPNs. Quantitative analysis will be used to understand the current situation of East Asian ICT trade and investment, some of which will be shown in graphic figures or tables.

Several methods were applied to collect qualitative and quantitative data from both the primary and secondary sources. Apart from relying on literature reviews, governmental and policy documents, and official websites, the analysis in this thesis was made by means of statistical material and other secondary data. That contributed to produce the descriptive and analytical core of this research. The Chinese Customs authorities, the Ministry of Industry and Information Technology and the Ministry of Commerce are major sources of data in this thesis. This thesis also refers to data from the ASEAN official website and the WTO. Considering the fact that China‘s final official statistical data are reported level by level, there will be a certain degree of deviation when local governments are over-concerned about the performance of local officials. Therefore, this thesis also refers to second hand data which was provided by interviewees; however, that could possibly contain respondent bias.

All people who have been interviewed are closely related with the ICT industry, and were selected to cover all possible stakeholders. Officials from government agencies work in relevant ministries and informed me about the formulation and applications of policies. The interviewees in cases studies were selected because they are working or worked as key roles in the relevant Chinese ICT enterprises that represent the key

sectors of the ICT industry. They were selected also because they have personal experiences in the ICT enterprises that are unknown but represent the situation of very small ICT enterprises, which can help understand the current ICT manufacturing pattern in China. Information provided through the above resources is authentic and the veracity of the information can be proved. I have tried to make all interviewees understand the process in which they were to be engaged, the research objectives and how the data they provided would be used. With the purpose of protecting the interviewees and sources from any possible unfavourable results from the research, most interviewees in this thesis are anonymous and named by the Roman alphabet based on the initials of their family names (for example interviewee D, Z etc.).

With the purpose of better understanding the growth route of indigenous Chinese ICT enterprises, this thesis also investigates thoroughly the MNCs‘ role as a general background. That is important because MNCs not only had great influence in the initial development stage of Chinese ICT enterprises, but also continue to be integrated into the development of the Chinese ICT industry. The rise and the fall of MNCs reflect the rapid growth of Chinese indigenous ICT enterprises that developed by being integrated into RPNs. Meanwhile, the sources of MNCs also show whether and how Chinese indigenous ICT enterprises grow against the background of EARPNs.

Case studies are undertaken to address the processes through which Chinese businesses grow from production bases: from simple imitation and catching-up to actively going abroad. Changes in trade and investment cooperation brought by ICT enterprises will be a focus, considering FDI and strategic alliances between enterprises in the East Asian region will play a major role in promoting technology transfers and joint technological

development (ASEAN 2002). This thesis will address five case studies in three main fields of the ICT industry. The complicated classification of the ICT industry and varying degree of Chinese ICT enterprises going abroad encouraged the selection of a number of case studies in this thesis. A choice was made in this thesis to select a range of ICT enterprises in various fields of the ICT industry in the interest of providing a cross-section of Chinese ICT enterprises‘ activities with a regional dimension.

The first two case studies in the first main field concern Chinese ICT equipment manufacturing; the second two case studies in the second main field look at the development of the Chinese software sector in the ICT industry; while the last addresses the operation of Chinese monopoly telecommunications enterprises. In order to provide a cross-section of the growth route of Chinese ICT enterprises, the five case studies manifest concerns over ICT manufacturing that represents low- and middle-end production of the ICT industry; R&D for ICT software that represents China‘s ICT industry is trying to get rid of serious dependence on low-end production and trying to have self-owned R&D capabilities; and the telecommunications service that represents China tries to strengthen its role as a big power in providing ICT services while becoming a world famous factory, respectively. These five case studies essentially show the development of Chinese ICT enterprises for different aspects of the ICT industry.

The types of enterprises chosen for case studies range from state-owned enterprises, to private enterprises and joint-venture enterprises. The five case studies involved in this thesis illustrate three main groups of enterprise types in current Chinese ICT enterprises, and reveal the characters of each sector in the ICT industry. The cases of Huawei and ZTE illustrate that most Chinese ICT equipment manufacturers are privately owned,

while only a few of them could have been directly supported by government, except for enterprises that grow with strong government backing. The cases of Neusoft and UFIDA show that parts of Chinese software R&D enterprises are still fairly dependent on external support—FDI involvement. Several software enterprises, which are called ‗National enterprises with Chinese brand names‘, are still ranked as low or middle software R&D product manufacturing. As for the monopoly China Mobile, a typical state-owned enterprise, its development and operation to a large extent came from the support of the government. Although the monopoly telecommunications service enterprises already has the capability to go abroad to explore overseas markets, there is still a lack of a clear and specific blueprint because of excessive government intervention.

The format of each case study analysis is relatively consistent. In each case, analysis is divided into three sections. In the first of these sections, a brief overview is provided as a background to show the growth route and the changes of the enterprise. Then the work will map their overseas expansions. The last part analyses these overseas expansions and their significances both domestically and regionally. The second and the third sections of these case studies constitute the primary concern of the thesis. Specifically, this section seeks to map how these ICT enterprises intentionally or unintentionally, voluntarily or driven by government, explore their overseas markets, particularly the East Asian market. This section also serves to provide an explanation as to why some ICT enterprises successfully develop overseas markets. Analysing these case studies examines whether Chinese ICT enterprises have developed according to the model described by a modified flying geese paradigm. Meanwhile, these case studies also show whether Chinese indigenous ICT enterprises have already impacted on the

modified flying geese paradigm.

It is unavoidable to have personal bias from interviewees and myself because of objective and subjective reasons. Meanwhile, unreliable data resources and the skills of the researchers also limit the research, although these flaws were minimized as much as possible.