Operating as a Foreign Company in China: Introduction and Overview

Since its government's dramatic shift in foreign and economic policy in 1978, China has been regarded as a lucrative target for foreign multinational enterprises and international business researchers alike. This essay reviews the distinctive features of the Chinese business environment and examines the empirical academic research on the management behaviour of foreign investors in China. The research addresses the issues of the choice of entry mode; the selection of appropriate partners for joint ventures; negotiations with Chinese partners and authorities; corporate governance; human resource management; the implementation of knowledge transfer between the foreign parent and the Chinese affiliate; and the problems and opportunities for successful marketing in China. It is noted that finance questions have received little attention in the literature. Finally, an overview is provided of the succeeding papers and their conclusions.