part of their research e
ffort in China. These corporations often
complain at what they consider the illegal pirating of their tech-
nologies and designs by indigenous Chinese companies. But they
can do little about it given the reluctance of the Chinese govern-
ment to intervene and the power of the Chinese state to make
things di
fficult for them to operate in the world’s largest market if
they press too hard on such issues. And it is not only foreign
companies that have been active. Both Japan and South Korea have
invested in large-scale ‘research cities’ in China to position them-
selves to take advantage of highly skilled but low-cost labour. The
overall e
ffect is to make China a much more attractive location for
high-tech sector activities.
26
Even Indian high-tech companies
find
it cheaper to o
ffshore some of their activities to China. An
indigenous high-tech sector has also taken o
ff in a number of areas.
In Shenzhen, for example, ‘with dozens of sleek stone and glass
buildings that would not look out of place in Silicon Valley, the
expanding campus houses many of the 10,000 engineers working
to establish Huawei as China’s
first international player in the
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