The Setback And Expansion Of Strategic Industrialization:the Evolution Of Machine Industry Of China,1900-1957

Strategic industrialization is the process of industrialization in which the state plays an important role in the strategic industries. A nation can foster some industries which are close to the military and high-technology for its survive and independent. Machine industry is just one kind of such strategic industries. This paper analyzed the evolution of Chinese machinery industry from1900to1957chronologically, so as to explore the development mechanism of late development countries’strategic industries.In1900, the Qing dynasty was on the verge of collapse, but the machinery industry started to take off. However, the guide of Qing government was very inefficient, especially with the declining of the government power, market gradually dominated the development of the machinery industry alone. In the days of Revolution of1911, stimulated by the nationalism and market, the machinery industry attained further development. However, under the leadership of the Northern Warlords Government of China, the whole country was gradually reduced into disorder. Therefore the free market for the then Chinese machinery industry was a double-edged sword. Because the free market followed the principle of comparative advantage, the technique development of machinery industry was contained. The supposed technology-intensive industry was reduced to be labor-intensive industry. Because of infringement of Japanese against China, the Nanking government strengthened the guide toward the development of this strategic industry. When Japan’s full-scale war of aggression against China happened, many machinery companies moved to the inner land, which reshaped the geological distribution of the machinery industry. During this period, the most meaningful thing for the machinery industry was the growth of the state-owned machinery companies in those areas governed by Kuomintang, whose technology-oriented strategy improved the industry. Apart from setting up some machinery companies, Kuomintang also took some other measures to support the development of the machinery industry. After Japan’s aggression against China was defeated, Kuomintang government ceased the government purchasing policy at war, which reduced the machinery companies into plight. After the Communist Party of China came to power, in order to build a complete industry system and consolidate the independence of China, the new regime regarded the machinery industry as the strategic industry, and gave special assistance to its development. A Military-Industry-Academic Complex has been built.The conclusion looked back on the whole paper. Based on the historical facts, it carried out theoretical abstraction which can be used to explore the development mechanism of late development countries’ strategic industries and figure out the reasons for the success or failure of the government’s promotion toward strategic industries. The will of government’s interfering into the development of the strategic industries and its governance capability are crucial in terms of improving its position in the world system.