International business in China vis a vis the global economic crisis: introduction

Abstract

Chinese management is in transition, as China increasingly becomes a major economic player in international business. While not completely immune from the effects of the ongoing global economic crisis, China is still contributing to world economic growth. The Chinese Communist Party leaders have staked their legitimacy on rising living standards and consequently foreign policy is economically driven, reflecting in its practice both the ‘realist’ and ‘liberal’ views of international relations theory. China, as the workshop of the world, has benefited from foreign direct investment but protectionist barriers in Western countries are forcing a move from labour intensive to high tech products. To remain competitive, Chinese industry must move up the value chain, a process that requires innovation leading to independent product development. Here, however, and, more especially in service sectors like banking, foreign investors can still find lucrative opportunities. Finally, as China's outward investment advances, a distinctly Chinese management style may evolve, as we shall see in this Symposium, combining native and foreign elements.