Which Chinese automobile firms participated in the clustering? This paper introduces the Di* statistic, a modification of the firm-level Di statistic, which Scholl and Brenner (2016) proposed to identify industrial clusters without predetermined borders to address the Modifiable Areal Unit Problem (MAUP). Utilizing this MAUP-free method and a meticulously constructed micro-geographic dataset based on the firm-level dataset of the 2008 China Economic Census, this paper detects clustered automobile firms across mainland China for the first time.

The geographical distribution of automobile industry clusters indicates that clustering of the automobile firms is not limited to the well-known six major automobile industry clustering areas but also extends to most other regions of mainland China. It is noteworthy that automobile firms do not widely agglomerate throughout these regions but rather cluster in select prefectures, counties, towns, or villages. The “Major Six” areas are too vast for effective automobile cluster analysis.

Domestic private enterprises play a significantly important role in China’s automobile clustering. However, foreign-funded enterprises and large state-holding enterprises have also contributed to automobile clustering in China.

Provincial-level regions are categorized based on the ownership types of clustered automobile firms, with a primary focus on large and medium-sized enterprises. These regions can generally be classified into: (i) clustering regions dominated by domestic non-state-holding enterprises (Zhejiang, Henan, Jiangsu, Shandong, Hebei), (ii) clustering regions dominated by state-holding enterprises (Hubei, Anhui, Heilongjiang, Jiangxi, Sichuan, Guizhou, Inner Mongolia), (iii) clustering regions dominated by foreign-funded enterprises (Guangdong, Beijing, Tianjin, Shanghai, Liaoning), and (iv) mixed type clustering regions (Chongqing, Jilin, Fujian, Hunan, Guangxi, Shaanxi, Hainan).

However, automobile firms only cluster in specific areas within each province, and the clustering in these areas exhibits various distinct characteristics. As an example of detailed analysis of clustering within a province, the clustering patterns of automobile firms within Jiangsu Province are examined by plotting clustered firms on the map of Jiangsu Province. In Jiangsu Province, automobile firms predominantly cluster along the Shanghai-Nanjing railway. While majority of clustered firms are domestic non-state-holding enterprises in Jiangsu Province overall, there are regions like Nanjing where subsidiaries of major state-holding automobile groups such as SAIC play a significant role, as well as regions like the eastern area of Suzhou where foreign enterprises dominate, located close to the cluster areas in the northwest of Shanghai.

Taiwan’s mainland China policy-making process has long lacked a clear legal framework, resulting in ambiguity regarding the president’s authority. This study examines how the Lee Teng-hui administration addressed this issue by institutionalizing and legalizing the process.

Prior to Lee, presidents like Chiang Kai-shek and Chiang Ching-kuo exercised unchecked authority due to ambiguities in the constitution and the Temporary Provisions Effective During the Period of National Mobilization for Suppression of the Communist Rebellion.

However, Lee sought to establish a more formal structure. Lee’s reforms included constitutional amendments and the empowerment of the National Security Council, providing a legal basis for presidential decision-making in mainland China policy. However, tensions arose between Lee and Premier Hau Pei-tsun, who challenged Lee’s leadership and hampered the new system’s effectiveness.

Despite these challenges, Lee’s efforts marked a significant shift from an opaque system to a more institutionalized approach. This transformation reflects the complex interplay between cross-strait relations, domestic politics, and the evolution of Taiwan’s political structure.

While challenges remain, particularly regarding the process’s dependence on strong presidential leadership, Lee Teng-hui’s administration made crucial strides in establishing a legal framework for mainland China policy and national security policy making process. This shift represents a significant development in Taiwan’s ongoing process of democratization.