ABSTRACT
In 1978 Deng Xiaoping became the head of the People’s Republic of China. Under his leadership China committed to economic reforms which stimulated uninterrupted economic growth and the Open Door Policy. This policy introduced reciprocal trading rights among countries enabling fi rms to take up international business activities. The regulatory bodies could use vast international connections, especially to overseas Chinese and their “bamboo networks.” Initially starting from the provinces geographically neighboring Hong Kong, Macau and Taiwan, these activities soon expanded to more distant provinces. The economic reforms in effect made it possible to modernize China and gave rise to new economic actors entering the organizational landscape.
