China juggling business baits and ideology

China's political system is still struggling to develop an approach to foreign business which is attractive to enterprises that can help the country meet its needs, while trying to follow acceptable post-Mao principles, says a recent report on political risk for international business by Frost & Sullivan, an international market analysis firm.

Most Chinese political leaders seem to agree that the country should continue opening itself to the outside would, but they disagree on such basic questions as the proper amount of decentralization in decisionmaking for foreign policy, the report states. Other controversies involve the extent to which attempts at modernization should rely on investment in heavy industry, as well as the proper level of defense spending. Also, past political disputes are still making it difficult for the government to make quick or decisive actions in response to business needs, the report says.

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