Australian businesses in China : the political dimension

This paper develops a model about the political factors Australian businesses should consider when entering China, and then empirically examines the issues by interviewing representatives .fi'om 40 companies who have operations in China. The political dimension in this paper comprises the political system, political barriers and risk, relationships with government, Australian government assistance, and Chinese government assistance. We then looked at whether these components of politics influenced entry modes, as stated by our interviewees. We found that political barriers effected entry mode choice, while the remainder of components of politics influenced business implementation and operation.