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Huang's Response

Published online by Cambridge University Press:  02 February 2015

Yasheng Huang
Yasheng Huang*
Affiliation:
Sloan School of Management, Massachusetts Institute of Technology, USA
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Extract

Beamish and Delios write an eminently reasonable review. I agree that the environment for private sector has improved. Selling China describes some of these developments (pp. 202-204) and predicts that the overall role of FDI will decline, which is exacdy what happened. The FDI/domestic private investment ratio has fallen. This decline is the other side of the mirror as the rising ratio: suppressing the domestic private sector, everything else being equal, can raise this ratio; supporting it can reduce this ratio. There are no logical or empirical inconsistencies. I believe that I overstated the ideological rigidity of the Chinese state and that I was vague in specifying the ideological constraints. In the 1990s, the ideology was of an industrial policy kind, rather than Communism.

Type
Symposium
Information
Management and Organization Review , Volume 1 , Issue 2 , July 2005 , pp. 329 - 333
Copyright
Copyright © International Association for Chinese Management Research 2005

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