Table Of ContentSpringer Geography
Shengjun Zhu
John Pickles
Canfei He
Geographical
Dynamics and
Firm Spatial
Strategy in
China
Springer Geography
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Shengjun Zhu John Pickles
(cid:129)
Canfei He
Geographical Dynamics
and Firm Spatial Strategy
in China
123
ShengjunZhu CanfeiHe
Collegeof Urban andEnvironmental Collegeof Urban andEnvironmental
Sciences Sciences
PekingUniversity PekingUniversity
Beijing Beijing
China China
JohnPickles
Department ofGeography
University of NorthCarolina
ChapelHill, NC
USA
ISSN 2194-315X ISSN 2194-3168 (electronic)
SpringerGeography
ISBN978-3-662-53599-8 ISBN978-3-662-53601-8 (eBook)
DOI 10.1007/978-3-662-53601-8
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Acknowledgements
We would like to thank Jennifer Bair, Robert Begg, Adrian Smith, Gary Gereffi,
MeenuTewari,ElizabethHavice,ScottKirsch,andTuLanfortheircarefulreview
andrecommendationsonsomechapters.ColleaguesinChinaassistedinfieldwork
and interviews in 2011, 2012, 2013, and 2014. We would like to thank Hua Shan
(the office director from the China TextilePlanningInstitute of Construction), Jian
Zheng (project manager from the China National Textile and Apparel Council),
Dr.JiciWangfromPekingUniversity,Dr.NingchuanJiangfromChengduTextile
College, Allan Wong of Li and Fung, Stephen Frost and Jacky Wu of CSR Asia,
Gu Qiang of the NDRC, Xubiao Zhang of ILO China, Benjamin Wong of
EuroRSCGandtheChinaLabourMonitor.Thisresearchwassupportedinpartby
the National Science Foundation Grant Award No. BCS 0551085, the Carolina
Asia Center, Grier Woods China Fellowship, and by the Capturing the Gains
Research Network on Economic and Social Upgrading in Global Production
Networks (University of Manchester and UK DFID). We also thank the support
of the National Natural Science Foundation of China (No. 41271130). Finally,
Dr. Canfei He acknowledges the financial support of the National Natural Science
Foundation of China for Distinguished Young Scholars (No. 41425001). The
authors are responsible for all errors and interpretations.
v
Contents
1 Introduction . .... .... ..... .... .... .... .... .... ..... .... .. 1
1.1 Background.. .... ..... .... .... .... .... .... ..... .... .. 1
1.2 The Case of Ningbo..... .... .... .... .... .... ..... .... .. 5
1.3 Methodology . .... ..... .... .... .... .... .... ..... .... .. 8
1.3.1 Data Sources .... .... .... .... .... .... ..... .... .. 8
1.3.2 Fieldwork.. ..... .... .... .... .... .... ..... .... .. 9
1.4 Synopsis of This Book... .... .... .... .... .... ..... .... .. 10
References ... .... .... ..... .... .... .... .... .... ..... .... .. 14
Part I Government
2 Bring In, Go Up, Go West, Go Out: Upgrading,
Regionalization, and Delocalization in China’s Apparel
Production Networks .. ..... .... .... .... .... .... ..... .... .. 19
2.1 Introduction.. .... ..... .... .... .... .... .... ..... .... .. 19
2.2 Bring in: Export-Led Assembly and the Rise of China
in Global Apparel Value Chains ... .... .... .... ..... .... .. 20
2.3 The Limits of Export-Led, Low-Wage Industrialization... .... .. 23
2.4 Upgrading, Regionalization, and Delocalization
in the Chinese Apparel Industry.... .... .... .... ..... .... .. 26
2.4.1 Go Up: Policies Initiatives on Industrial Upgrading.... .. 29
2.4.2 Go West: Regionalization Policies and Inter-regional
Competition ..... .... .... .... .... .... ..... .... .. 34
2.4.3 Go Out: From Bringing-into Outsourcing... ..... .... .. 41
2.5 Conclusion... .... ..... .... .... .... .... .... ..... .... .. 45
References ... .... .... ..... .... .... .... .... .... ..... .... .. 46
vii
viii Contents
Part II Firm
3 Geographical Dynamics and Industrial Relocation: Spatial
Strategies of Apparel Firms in Ningbo, China... .... ..... .... .. 51
3.1 Introduction.. .... ..... .... .... .... .... .... ..... .... .. 51
3.2 Conceptualization of Spatial Dynamics: Towards
an Analytical Framework. .... .... .... .... .... ..... .... .. 52
3.2.1 Local/Localization .... .... .... .... .... ..... .... .. 52
3.2.2 Global/Globalization... .... .... .... .... ..... .... .. 54
3.2.3 Regional/Regionalization ... .... .... .... ..... .... .. 55
3.2.4 Application to Apparel Industry in China... ..... .... .. 56
3.3 Geographical Dynamics and Firm Relocation . .... ..... .... .. 58
3.3.1 Case A: Relocating as a Lead Firm ... .... ..... .... .. 59
3.3.2 Case B: Going Out and Racing to the Bottom.... .... .. 60
3.3.3 Case C: Staying and Going Nowhere.. .... ..... .... .. 61
3.3.4 Case D: Going Along the Coastline... .... ..... .... .. 62
3.3.5 Case E: Going in but not Far Away... .... ..... .... .. 63
3.4 Relocation in the Global, Regional, and Local Context... .... .. 64
3.5 Conclusion and Discussion ... .... .... .... .... ..... .... .. 68
References ... .... .... ..... .... .... .... .... .... ..... .... .. 70
4 Global, Regional, and Local: New Firm Formation and Spatial
Restructuring in China’s Apparel Industry . .... .... ..... .... .. 73
4.1 Introduction.. .... ..... .... .... .... .... .... ..... .... .. 73
4.2 Conceptual Framework and Research Hypotheses.. ..... .... .. 74
4.2.1 Embedding in a Localized Cluster .... .... ..... .... .. 74
4.2.2 Racing to the Bottom in a Globalized Value Chain.... .. 75
4.2.3 Relocating in a Regionalized Way.... .... ..... .... .. 76
4.2.4 Firm Capability and Different Location Choices... .... .. 77
4.3 Industrial Relocation and Transforming Pattern of New Firm
Formation ... .... ..... .... .... .... .... .... ..... .... .. 79
4.4 Research Design .. ..... .... .... .... .... .... ..... .... .. 80
4.4.1 Variables .. ..... .... .... .... .... .... ..... .... .. 80
4.4.2 Model Specifications .. .... .... .... .... ..... .... .. 81
4.5 Statistical Results.. ..... .... .... .... .... .... ..... .... .. 83
4.5.1 Transforming New Firm Formation Pattern . ..... .... .. 84
4.5.2 Temporal Variation.... .... .... .... .... ..... .... .. 86
4.5.3 Firm Capability and Different Location Choices... .... .. 89
4.6 Conclusion and Discussion ... .... .... .... .... ..... .... .. 91
References ... .... .... ..... .... .... .... .... .... ..... .... .. 94
Contents ix
5 Turkishization of a Chinese Apparel Firm: Fast Fashion,
Regionalization, and the Shift from Global Supplier to New
End Markets. .... .... ..... .... .... .... .... .... ..... .... .. 97
5.1 Introduction: Delocalization and Persistence in the Apparel
Industry. .... .... ..... .... .... .... .... .... ..... .... .. 97
5.2 Globalization and Regionalization: Upgrading Prospect
for Geographically ‘Remote’ Firms . .... .... .... ..... .... .. 99
5.3 The Transformation of Seduno .... .... .... .... ..... .... .. 102
5.3.1 Pre-Turkishization Development of Seduno . ..... .... .. 103
5.3.2 Seduno’s Turkishization Strategies.... .... ..... .... .. 104
5.4 Findings of the Case Study ... .... .... .... .... ..... .... .. 109
5.5 Conclusion... .... ..... .... .... .... .... .... ..... .... .. 114
References ... .... .... ..... .... .... .... .... .... ..... .... .. 116
Part III Spatial Articulation
6 Institutional Embeddedness and Regional Adaptability
and Rigidity in a Chinese Apparel Cluster.. .... .... ..... .... .. 121
6.1 Introduction.. .... ..... .... .... .... .... .... ..... .... .. 121
6.2 Lock-In and Lockout.... .... .... .... .... .... ..... .... .. 123
6.2.1 Two Trajectories of Path Dependence, Openness of
Cluster, and Lock-In... .... .... .... .... ..... .... .. 123
6.2.2 Agents, Multiscalar Coevolution, and Lockout.... .... .. 125
6.3 Pipelines to External Knowledge and Negative Lock-In .. .... .. 127
6.4 Harmonies and Disharmonies in the Processes of Coevolution . .. 130
6.4.1 Harmonies and Disharmonies in the Process
of Upgrading and Relocation .... .... .... ..... .... .. 131
6.4.2 Path-Dependent and Path-Breaking ... .... ..... .... .. 134
6.5 Conclusion and Discussion ... .... .... .... .... ..... .... .. 137
References ... .... .... ..... .... .... .... .... .... ..... .... .. 140
7 Global and Local Governance, and Industrial and Geographical
Dynamics: A Tale of Two Clusters.... .... .... .... ..... .... .. 143
7.1 Introduction.. .... ..... .... .... .... .... .... ..... .... .. 143
7.2 Global and Local Governance . .... .... .... .... ..... .... .. 145
7.3 Research Design and Study Areas.. .... .... .... ..... .... .. 147
7.4 Two Types of Local Governance... .... .... .... ..... .... .. 150
7.5 Governance and Industrial and Geographical Dynamics .. .... .. 153
7.5.1 Governance and Industrial Upgrading . .... ..... .... .. 153
7.5.2 Governance and Restructuring of Productive Spaces ... .. 157
7.5.3 Comparative Discussion.... .... .... .... ..... .... .. 161
7.6 Discussion and Conclusion ... .... .... .... .... ..... .... .. 163
References ... .... .... ..... .... .... .... .... .... ..... .... .. 164
x Contents
8 Going Green or Going Away: Environmental Regulation,
Economic Geography and Firms’ Strategies in China’s
Pollution-Intensive Industries. .... .... .... .... .... ..... .... .. 169
8.1 Introduction.. .... ..... .... .... .... .... .... ..... .... .. 169
8.2 A Heuristic Analytical Framework.. .... .... .... ..... .... .. 174
8.2.1 Pollution Haven Hypothesis, Porter Hypothesis,
and Firm Characteristics.... .... .... .... ..... .... .. 174
8.2.2 Regional Hub Effect and Political Environment... .... .. 175
8.3 Research Design and Site Characteristics. .... .... ..... .... .. 178
8.4 Different Firms, Differ Strategies... .... .... .... ..... .... .. 179
8.4.1 Firm A: Going Green in Situ.... .... .... ..... .... .. 180
8.4.2 Firm B: Relocating to Industrial Parks. .... ..... .... .. 182
8.4.3 Firm C: Relocating to ‘Pollution Havens’ .. ..... .... .. 183
8.4.4 Firm D: Outsourcing to ‘Pollution Havens’ . ..... .... .. 184
8.4.5 Firm E: Relying on Large Firms . .... .... ..... .... .. 184
8.4.6 Firm F: Waiting and Dying . .... .... .... ..... .... .. 185
8.5 Going Green or Going Away.. .... .... .... .... ..... .... .. 186
8.6 Conclusion... .... ..... .... .... .... .... .... ..... .... .. 192
References ... .... .... ..... .... .... .... .... .... ..... .... .. 194
9 Summary and Conclusion ... .... .... .... .... .... ..... .... .. 199
9.1 Changing Industrial Policies from Various Levels of
Governments . .... ..... .... .... .... .... .... ..... .... .. 200
9.2 Firm Strategies to Increasing Competitive Pressures ..... .... .. 200
9.2.1 Delocalization/Relocation... .... .... .... ..... .... .. 200
9.2.2 Upgrading . ..... .... .... .... .... .... ..... .... .. 202
9.3 Spatial Articulation Between Changing Industrial Policies
and Firm Strategies ..... .... .... .... .... .... ..... .... .. 203
Reference.... .... .... ..... .... .... .... .... .... ..... .... .. 206
