Of the many factors that have contributed to China's industrial development and technological rise, the role of government policy has been impossible to ignore. Policies adopted by the central and local governments in China continue to exert enormous influence on industry in China. While China has been gradually moving to a development model that increasingly stresses market mechanisms over central planning, the state still intervenes in significant ways. It is therefore helpful to understand the policymaking process and how this process impacts the development of firms and industries, as...