Article,

How Corporate China is Evolving (Special Report: China's Business Landscape)

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The McKinsey Quarterly, (July 2008)

Abstract

In the past, most Chinese companies fell into one of three categories: state-owned enterprises, joint ventures between Chinese and foreign businesses, or wholly owned foreign enterprises. But years of rapid economic growth are redrawing the landscape. State-owned enterprises remain, although this category is changing. Meanwhile, three other kinds of competitors are developing: globalizers, ``restless adolescents'' aspiring to a bigger global presence, and innovators and entrepreneurs. To be sure, many of China's most dynamic, competitive companies retain vestiges of state ownership. Global executives will need a better understanding of Chinese competitors, suppliers, and business partners no matter where they fall along the ownership spectrum---from wholly private sector to wholly government owned. A sidebar addresses the mind-set of the executives who run these evolving Chinese.

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