China's Future In The Knowledge Economy: Engaging the New World.

• Author: Bi, Jianhai
• Position: Book Review

Edited by: Bhajan Grewal, Lan Xue, Peter Sheehan and Fiona Sun

Published by: Centre for Strategic Studies, Victoria University of Technology/Tsinghua University Press, Melbourne/Beijing, 2002, 416pp, A$44.95.

In developing its economy, China has to deal with a new world, that of the emerging global knowledge economy. This world is quite different from that in which the Western developed countries succeeded in advancing their economies, or even that in which the Asian Tigers accomplished economic achievements. Meanwhile, China is not only undertaking a transition to a knowledge economy but also undergoing wren-ching changes in its economic structure. So what is the significance, impact and implications of this? On these questions, this book brings together the perspectives of Chinese scholars and officials and leading experts from the OECD and the World Bank and academics from Australia and several other countries.

The main body of the book consists of five parts. The first is about the issues of concept and strategy. Initially, in a background analysis, the originality of the subject of study is explained. The concept of the knowledge economy is defined and the importance of knowledge econ-omy and reasons why China needs to develop a knowledge economy in carrying out the country's development strategy are discussed.

The second part dwells on the foundations of the knowledge economy. The types of knowledge strategies of APEC countries are outlined. A preliminary assessment of China's transformation towards a knowledge economy is summarised and some recommendations on factors China needs to take into account are provided. New trends and policy challenges in developing the knowledge economy in the OECD countries as well as 'new manufacturing' are examined. In particular, the issue of innovation is focused upon.

In the third part, multiple perspectives on the knowledge economy in China are analysed. These perspectives cover a wide range, such as manufacturing, state-owned enterprises, science and technology, foreign markets and capital and higher education. In addition, the dimensions involved in the knowledge economy, mainly regional policy, development strategy, innovation, building knowledge infrastructure and the industrial economy, are examined.

Regional perspectives are the topic of the fourth part. Four case studies--of Shanghai, Beijing, Shaanxi and the Pearl River Delta--provide the basis for analysis of the positions and roles of the...