Chinese state-owned companies are beginning to be players on the world stag
e. Within a developed country, such as the UK, however, the majority of inv
estments are at present small-scale operations in trading and financial ser
vices. There are signs of the larger, longer-established enterprises evolvi
ng, as planned, towards transnational conglomerates, albeit hampered by sta
te ownership. While not yet major competitors, Chinese enterprises offer op
portunities as suppliers to and partners with UK companies; foreign direct
investment in manufacturing industry in the UK is still some way off. (C) 1
998 Elsevier Science Ltd. All rights reserved.