Field research on this book began in the fall of 1998, after I joined the faculty of Harvard Business School. The project represented a steep learning curve. My previous work had dealt with general political economy issues and with public policy institutions in China. Foreign direct investment (FDI) as an economic phenomenon and many detailed aspects of the Chinese economy were a substantial departure from both the empirical focus and the methodological approach of my earlier research.

Harvard Business School provided a rich and stimulating environment as I delved into this new topic. I became acquainted with and, gradually, engaged in many business and FDI issues by learning from my colleagues and by teaching and developing course materials for one of the most successful courses at Harvard Business School: Business, Government and International Economy, popularly known among our students as “BGIE.” As readers will discover, the thrust of the argument I develop in this book is strongly institutional, an area of political economy I have always been interested in, but my institutional argument is anchored in a firm understanding of the business dynamics and economic logic of FDI issues. In this respect, I have benefited greatly from my affiliation with Harvard Business School.