Multinational Corporations and Joint Ventures in China - Case Study Example

The problems are of particular interest to the researcher because of the background knowledge that is available on literatures about the remarkable growth of China after the Civil War and the Japanese occupation during the World War II, which is primarily brought about by the progress of people and personnel management initiated by Mao Zedong. In the 1970s, China was an extremely devastated and poor country; however, the nation was able to rise on its feet by the mid-1990s and it successfully launched itself as one of the emerging economic superpowers.

Basically, economic progress has been uniquely impressive with an average rate of more than 9 percent per annum over the previous decades, thus actual production leaped massively, currently the fastest growth rate in the world. If state-owned enterprises (SOEs) improved at 7.1 percent annually over the past decades, non-government outdo this at an average of 38.5 percent from 1990 to 1994; then, foreign investment and aid poured into the People’s Republic of China (PRC) on an enormous degree and by the concluding phase of 1994 there were almost 240, 000 foreign-subsidized or joint venture agreements valued at $270 billion.

Therefore, there are studies which assumed that the transmission of management knowledge to Chinese enterprises from overseas has been mostly through such foreign-subsidized firms, particularly joint ventures, and that this proposal will be as valid of the management of human resources in various sectors.