مقاله سال ۲۰۱۶

China currently has the fastest passenger train on earth, the largest growing middle-class for consumer products, and the greatest potential to challenge the economic, political, and technological dominance of the West. It is also the one country that the world needs to know more about in order to understand and anticipate her global and regional impact. With its current population of 1.3 billion and an economic growth rate of between seven and ten percent over the past 35 years, China has recently surpassed the United States to become the world’s largest economy based on purchasing power parity as well as the top destination for foreign direct investment (Tung, in press). These accomplishments are largely the result of the many institutional changes that have taken place within the country, including major economic, political, and technological reforms all done within the confines of a one-party rule system. While these institutional changes have helped transformed China’s economy, will they be sufficient to enable the country to compete successfully in the future, particularly in the new innovation-driven global economy? If not, what other changes would be required for China’s long-term sustainability?

The purpose of this special issue is to provide a forum for strategy and international business scholars to examine the changing institutions in China and their impact on China business from two perspectives: (1) foreign firms seeking to invest in China, and (2) Chinese firms seeking to expand internationally. Four papers are presented here, which were selected from over 50 submissions by scholars around the world. Two of the papers report an empirical study, one concerning foreign firms establishing R&D centers in China and the other about Chinese firms acquiring assets overseas. The other two papers are commentaries providing a critical analysis of China’s institutions and other aspects of the society as they relate to the country’s economic past, present, and future. A brief summary of the four papers follows.