ABSTRACT
The twenty-first century is witnessing China’s growing global economic and diplomatic role. The country’s economy has undergone major change since the initiation of the open door policy in 1978, much of it due to the impact of foreign direct investment (FDI) which has brought technology and managerial skills. In the wake of the global recession and the decline of China’s export competitiveness, economic strategy in now emphasising domestic consumption and technological innovation together with their concomitant, highly skilled labour, with a key role to be played by the private sector. Consumption, in turn, will demand services, both in relation to finance and consumer legislation. As the Chinese economy matures so does growth in China’s inward and outward investment. As management responds to such economic restructuring, there are simultaneously implications for political and social change.
