Manchester Metropolitan University
Department of Management
The rapid and transformation of the Chinese economy during the last ten years of this century has been well documented (Goodhrat and Xu, 1996, Clarke and Yuxing, 1998). The sheer size of China´s growth rate is reflected in a virtual quadrupling of real output per capita from 684 yuan in 1978 to 2654 yuan in 1195 (Clarke and Yuxing, 1998, p 242).Whilst the enterprises, shareholding companies, joint ventures and foreign owned companies that have seen the lions share of growth. Indeed, it is this latter category of direct foreign investments that has been one of the most significant areas of development (Bjorman and Schaap, 1994) and Clarke and Yuxing (1998) estimate that this sector together with the private sector account for nearly 30 % of total output. In fact the Chinese market is estimated to be worth L 2 billion per annum to Britain alone in terms of exports and joint venture activity, rising L 20 billion over the next two or three years (Swain, 1999).
KEY WORDS: transformation of the Chinese economy, direct foreign investments, Chinese market.