National business systems:
The analysis and description of Chinese national business systems is utilized by embedding business systems socially which are impacted by several dynamic and disparate actors and phenomena, external and internal, present and past resent and are very complex inherently. Therefore understanding and representing such systems is not a nonlinear or straightforward exercise or perhaps ‘organic’, approach is needed (Soderberg and Stockholm, 2002). Thus the national business system of Chinese relationship can be handled by 3 components such as:
• Ownership which recognizes the enterprises owners, governance structures nature and how the control is exercised.
• Management which describes the important role of managers in the coordination of human, technical and financial resources.
• Networks that shows how the organizations are interconnected across the economy.
Ownership: Capital Business System of China:
Reid et al (2003) described that the present framework of ownership of the enterprise system of China has immediate descriptions in Chinese culture and history. In 1949 as a communist state the establishment of China under Mao Tse Tung was an event which has a profound effect on the contemporary business system shape as it is known well between 1949 and 1976. Under Mao, all of the productive assets of China were considered and thereafter controlled and owned by state of China. This was via so referred to as State Owned Enterprises in the industrial sector and by means of collective of workers handling collectively owned rural land in the agricultural sector.