Technology Accumulation and the Division of Labour between China, Taiwan and Japan: Taiwanese Automotive Parts, and Die and Mould Firms in China

Abstract

This paper seeks to analyze changes in the technical division of labour of Taiwanese automotive parts, and die and mould manufacturers in China using empirical data from a 2010 survey conducted in Kunshan. The evidence shows that these firms have upgraded considerably through strong technical collaboration with firms and imports of capital equipment from Japan. Both competition and cooperation have played an important role in the advancement of Taiwanese component and parts firms. The division of labour of automobile parts and dies and moulds appear to show firms in Japan and Taiwan enjoying cutting edge and intermediate technologies, while those in China are characterized by low end technology. However, owing to intense competition, the catching up speed of Chinese firms in China has accelerated and the gap has narrowed.- automotives, China, international division of labour, Japan, Taiwan, technolog