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Which Managers Trust Employees? Ownership Variation in China’s Transnational Economy

The Chinese economy was one of the world’s fastest growing during the 1990s. By the end of 2000, China had attracted a total of US$474.3 billion in capital investment from foreign direct investment since opening the door to the world in the late 1970s (China State Statistics Bureau, 2001). China’s entrance into the World Trade Organization is accelerating this phenomenon. More and more multinational corporations (MNCs) seek strategic alliances among Chinese enterprises. A challenge for them is to understand changing and complicated operating systems under China’s economy reforms both now and in the near future. Currently, state-owned, collectively owned, privately owned and joint venture forms coexist in China.