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Industry policy in Asia’s demographic giants: China, India and Indonesia compared

Published online by Cambridge University Press:  01 January 2023

Tom Barnes
Tom Barnes*
Affiliation:
Australian Catholic University, Australia
*
Tom Barnes, Institute for Religion, Politics & Society, Australian Catholic University, Level 6, 215 Spring Street, Melbourne, VIC 3000, Australia. Email: tom.barnes@acu.edu.au.
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Abstract

The experience of industry policy in the wider Asian region contrasts significantly with many of the neoliberal policy prescriptions prevalent in Australia today. Using the automotive industry as a comparative case study, this article compares industry policy in three demographic and geographic giants of the region: China, India and Indonesia. China’s dominant position has benefited from a highly ‘interventionist’ industry policy which places strict conditions on foreign carmakers in joint ventures. This policy has also influenced the emergence of a thriving domestic industry, with state-owned enterprises leading the way. While India has also emerged as a major auto producer, its industry policy has moved away from the joint venture model since the 1990s, with fully foreign-owned operations now playing a much bigger role. In contrast, Indonesia retains a version of the joint venture model while local industry is dominated by Japanese capital. The record of industry policy in these countries challenges the idea that more ‘liberal’ economic systems lead to stronger domestic industries or firms.

Keywords

025014P51Automotive industryChinaIndiaIndonesiaindustry policymanufacturing industryvarieties of capitalism
Type
Articles
Information
The Economic and Labour Relations Review , Volume 28 , Issue 2: Industry policies, financialisation and globalisation , June 2017 , pp. 218 - 233
Copyright
© The Author(s) 2016

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