Foreign direct investment has boomed in China and East Asia more gener
ally over the past decade. This has been accompanied by an influx of e
xpatriate managers with responsibility for managing joint ventures and
subsidiaries. The paper reviews the relevant literature and draws on
interviews with expatriate managers with extensive experience in China
, and some other East Asian countries, to identify key human resource
management issues and ways in which these were handled. The paper disc
usses the importance of individual learning and the application of kno
wledge of cultural differences to managing foreign invested enterprise
s. We argue that organizations could significantly enhance future expa
triate managerial effectiveness by systematically building, updating a
nd disseminating knowledge based on the experience of expatriate manag
ers.