SOUTH CHINA - ARE THE REWARDS STILL WORTH THE RISKS

China has one of the fastest growing economies in the world today. Wit hin China, South China with its four Special Economic Zones is doing p articularly well. As a result many overseas investors, in addition to the 'overseas Chinese' who have already invested there, are considerin g investment in the southern states of this booming economy. However, as so often in life, the rich pickings may have their own price. This article examines some of the problems which are experienced by those s eeking to participate in the South China growth phenomenon, from the p erspective of both Chinese and overseas enterprises. Two major issues are explored by reference to case histories. The main problems examine d are: variable standards of business ethics and infrastructure strugg ling to keep up with the pace of growth. The Build-Operate-Transfer ap proach to large contracting projects is examined through an example at the heart of one of the cases. Build-Operate-Transfer offers projects 'now' for developing economies and potentially good returns for devel opers, provided integrity prevails. The overall picture in South China is one of good returns, but only if you work hard to avoid the pitfal ls along the way. A map of the Pearl River Estuary is shown in Figure 1. (C) 1997 Elsevier Science Ltd.