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Huang's Response

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  • Huang, Yasheng

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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.

Suggested Citation

  • Huang, Yasheng, 2005. "Huang's Response," Management and Organization Review, Cambridge University Press, vol. 1(2), pages 329-333, July.
    • Handle: RePEc:cup:maorev:v:1:y:2005:i:02:p:329-333_00
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