Since the publication of the first edition of the book in 2007, much has changed in the Chinese business environment, including the phase-out of government preferential policy on foreign direct investment, the astonishing rise of Chinese companies and their ‘go-global’ rush, and the intensified competition between Chinese companies and foreign companies in China, in the region, and in the world. One thing remains unchanged, however: China has managed to maintain its growth momentum and continue to be the most attractive place for investors from all over the world. The demand for practical knowledge about managing international business in the changing Chinese context has increased. Many scholars from top universities and executives from large transnational corporations approached me, asking whether I might update the book. I did not make up my mind until June 2014 when Paula Parish from Cambridge University Press wrote to me about possible publication of the second edition of the book.
I wrote a revision plan. Paula sent the revision plan, for comments, to a dozen professors who used the book as a textbook. The comments and suggestions from these professors were very helpful and encouraging. The second edition of the book is based on these comments and suggestions. I sincerely thank all the professors who made comments and suggestions on the revision plan. The second edition differs from the first edition in several aspects. First, a new chapter, ‘Think strategically’, has been added to discuss major theories of international business and management and their relevance to China. Second, the chapter ‘Look before you leap’ has been completely rewritten to examine Chinese history, geography, economy, enterprises and political and legal system. Third, a new chapter, ‘Corporate social responsibility considerations’, has been added to discuss CSR issues and the strategies transnational corporations take to address them in China. Fourth, the chapter ‘Managing guanxi strategically’ has been removed and part of it included in the chapter ‘Negotiating with Chinese partners’. Fifth, all figures, tables and cases are updated, and an updated closing case is added at the end of each chapter.
In writing up the second edition of the book, I benefited immensely from a course that I taught for the executive MBA programme at Bond University Business School from 2008 to 2013. The course was titled Global Business Including China Study Tour.