CHEN Yi-Ru Regina (Hong Kong Baptist University), MNC-Government Relations and Corporate Political Strategies of MNCs in China's Era of Marketization, English/27pages, October 2008.


This study explored global public relations practice in government affairs of multinational corporations (MNCs) in China.  It first examined the nature of government affairs of MNCs in China.  It then analyzed the types of MNC-Chinese government relationships (MGRs) from a :coopetitive; view developed by Luo (2002). Lastly, it looked at how the types of MGRs affect the MNC・s selection of political strategies for policy- or regulatory-related issues.  Twenty-six qualitative interviews were conducted in this exploratory study, with 24 MNCs in China, a government affairs manager in the US-China Business Council, and a journalist in a major Chinese news agency.  Results showed that government affairs of MNCs in China was management of communication, issues, and relationships with different levels of the government. Government affairs commonly had six major functions across the MNCs.  These functions were needed for the MNCs・ to effectively manage their :coopetitive; relations, which contained co-existing competition and cooperation elements, with the Chinese government.  The practice of these functions was shaped by political- economic, and cultural characteristics in China.  Based on the MNCs・ varying degrees of competition and cooperation, four types of MGRs emerged.  However, the types of MGRs did not serve as an antecedent factor for the MNCs・ selection of political strategies.  Instead, the MNCs applied a similar set of strategies: accommodation, adaptation, influence, and compromise.