This unique paper, published in September 2003, discusses the current state and development of the Chinese high-tech industry. The author "begins with a brief overview of industrial policy for the electronics sector in East Asia, then discusses the relevant policies for two successive generations of optical storage: Video CD and DVD." The analysis of Video Compact Disc technology and its use is particularly insightful, since it is relatively unknown outside Asia. A brief look at other areas in the technology industry is given, including next-generation cellular telephony, High-Definition Television, and computer chips.