Since the turn of the century the Chinese state has endeavoured to establish an internationally competitive, export-oriented software services industry centred on large domestic firms. However, despite concerted targeting and significant state investment, the industry’s size and capabilities have fallen further behind those in peer competitor countries, particularly India. The article assesses the progress of the industry in China and examines how this relates to the PRC’s software strategy. It does so by adopting a comparative analysis approach, evaluating the PRC’s policy agenda and the axioms underpinning it in light of emerging research on the processes and mechanisms behind the more successful development of the software services industry in India. The article concludes by arguing that the PRC needs to make several substantive changes to its software strategy if it is to achieve its objectives.
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