This chapter argues that China's emergence as the world's number two economy presenting complexities for multinational businesses to navigate. Drawing on the author's own experience in training multinational businesses in China, the chapter highlights the rising tide of nationalistic sentiment in recent years, which has led to heightened outrage toward foreign brands for perceived offenses against China and Chinese interests. This wave of nationalism has reached a fever pitch, resulting in a climate of extreme caution among many multinational firms, including certain Chinese domestic companies that have partnered with foreign brands. As a result, these companies find themselves navigating a complex landscape when operating in the world's second-largest economy. They face pressures from various quarters, including the Chinese government's increasingly nationalistic stance, which seeks to tighten its governance and exert a direct role in business operations.

History of Multinational Business Development in China

China, as one of the world's largest economies, has emerged as a highly attractive investment destination for numerous multinational companies (MNCs), both Western and from other regions. Since its opening up in 1979 and the subsequent adoption of free market principles, China has experienced remarkable economic growth and transformation, becoming a prominent player on the global stage. Its vast market, abundant resources, and skilled workforce have made it an enticing prospect for businesses seeking growth and expansion opportunities. Over the years, China has established itself as a hub for manufacturing, technology, and services, attracting investments from a wide range of industries. The country's favorable business environment, improved infrastructure, and government initiatives to promote foreign investment have further contributed to its status as one of the world's most well-known and sought-after investment destinations.

However, the history of multinational business development in China extends far beyond the recent decades. In fact, it can be traced back to the late nineteenth century when foreign firms first set their sights on establishing a presence in the country. At that time, China's vast market and untapped potential presented an alluring opportunity for MNCs seeking avenues for growth and expansion. These early endeavors were primarily driven by the desire to access the Chinese market and cater to its burgeoning consumer base. The early twentieth century posed significant challenges for foreign firms operating in China.