The paper addresses the position occupied by China in the new international division of labour now developing as value chains become increasingly fragmented and work is relocated in the context of globalisation. China is currently experiencing an extremely dynamic industrialisation process, and worldwide foreign direct investment in industry is concentrating strongly in the People’s Republic. A comparative study of developments in the automotive and infocom industries examines a number of issues. Firstly, differences in development dynamics and corporate strategy in the two industries are examined. Secondly, the demands multinational companies make of their locations in China and their supplier structures are investigated. Thirdly, differences in the “embedding” of the new multinational company locations in China are investigated. Particularly interesting is the development of territorially integrated production clusters and the role of industrial parks. The fourth issue to be looked at is the impact of de-velopments in China on actors and locations in Germany.
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