The new industrial economics: insights into China's semiconductor industry

This chapter examines China's resilient push for semiconductor sovereignty amidst intense geopolitical pressure. It argues that China's experience extends beyond traditional industrial policy, exemplifying a new paradigm of techno-nationalist strategy driven by national security imperatives. Through a qualitative analysis of China's state–market dynamics, this research tackles the country's unique endogenous assets to reveal how it leverages exogenous shocks as catalysts for innovation. The findings offer a new framework for understanding industrial economics in an era of statecraft, demonstrating how China's security-driven, adaptive model is reshaping the global technology landscape.