Are you in the loop? China’s co-evolution dynamics

Junda Li & Dwayne Woods

Journal of Evolutionary Economics2026https://doi.org/10.1007/s00191-025-00937-2article
AJG 2ABDC A
Weight
0.50

Abstract

This paper presents a co-evolutionary framework for analyzing China’s industrial ascent, focusing on sectors such as telecommunications (5G), electric vehicles (EVs), and semiconductors. Challenging linear models of technological upgrading, the study examines how state-market interactions, asymmetric feedback loops, and strategic policy interventions generate diverse developmental paths. Empirical analysis using patent authorization data (2000–2023) reveals distinct outcomes: telecommunications exemplify adaptive growth through state-backed innovation; EVs show initial success but risk stagnation due to market saturation and overcapacity; semiconductors highlight structural vulnerabilities amid geopolitical sanctions. Simulations validate the model, demonstrating sector-specific responses to external shocks. This research advances evolutionary economics by integrating endogenous state–market feedback into industrial strategy, emphasizing managed disequilibrium and resilience.

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https://doi.org/https://doi.org/10.1007/s00191-025-00937-2

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@article{junda2026,
  title        = {{Are you in the loop? China’s co-evolution dynamics}},
  author       = {Junda Li & Dwayne Woods},
  journal      = {Journal of Evolutionary Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1007/s00191-025-00937-2},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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