Entering the Chinese Market

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Investors exploring the Chinese market must navigate a complex landscape marked by significant risks, including corruption, political instability, and personal safety concerns. Dixon and Newman analyze the key players in this environment, such as the People's Liberation Army and influential 'princelings,' while emphasizing the importance of 'guanxi' or connections. They also highlight the challenges faced by foreign businesses due to China's absence of standardized business ethics and rule of law, ultimately cautioning that potential rewards come with substantial personal and operational risks.