Mainland China：
·no freedom to hire and fire;
·low coherence of central state policy；
·weak relationship among large firms；
·weak relationship among large and small firms；

Where to go for China？
·Increasing resemblance to Taiwan.
1)freedom to hire and fire.
2)determined development of academic research for high-tech sectors.
3)development of Venture Capital.

Key weakness of mainland China:
·Underdevelopment and imbalance of entire finance system.
·Weaknesses of inter-firm relationships.

Conclusion:
·is excellent localion for much high-tech manufacturing and R&D.
·Chinese firms are/will be strong only in limited numbered medium and high-tech sectors.