Chapter 4

Using the Political Structure in China

Can We Ever Make Sense of It?1

The political environment in China differs greatly to political environments in Western countries, and as a result it is imperative that foreign businesses understand this environment and develop a range of strategies to deal with it. Although China has made dramatic changes to its economic, legal, and trade and investment frameworks over the decades, little changes have been made to the country’s political structure. The country is still a “one party socialist state,” and there is no significant opposition from any other party. This government plays a greater role in business than what is expected in the West, and as a result it is important that foreign organizations ...

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