Managing the global–local dilemma: problems in controlling Japanese subsidiaries in China: Jochen Legewie

One of the most striking characteristics of Japanese firms is their high reliance on expatriates in running their overseas subsidiaries – a management practice for which they have been both praised and criticised worldwide. In China, this approach only fits well for some firms. According to a recent survey by the Japan-China Investment Promotion Organisation, Japanese export-oriented affiliates in China are quite profitable, with only 15 per cent turning in losses.1