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These changes are profound, in that they shift the balance of power in some Chinese companies from state control to investor control (Ibid). This has significant ramifications for the way that these companies are managed. Traditionally through the course of the economic reforms, the Chinese government has considered growth and maintaining high levels of employment as priorities even above profits. This is still the case with many state-owned enterprises today, as the example of Asia Aluminum bonds shows (Foley & Beales, 2009). When investors control the company, however, then the profit motive becomes paramount. This shifts time frames under which managers work; it shifts their priorities; and it shifts the role of building viable long-term strategies in the business model

The Asia Aluminum example, wherein a firm with falling demand has maintained production levels to the detriment of bondholders who will receive pennies to the dollar, shows how the Chinese economic system must continue to restructure in order to maintain the confidence of potential foreign investors. The country has been successful in attracting investors, but when faced with these types of losses, investors will increasingly demand better protections. These protections will come in a variety of forms, including the

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