IntroductionChina's modern economic growth is progressing on a scale unmatched in the history of any nation, sustaining a growth rate of approximately 10% per year for the past 25 years . This is even more remarkable when you consider that the world is in a phase of transformation and globalization. In these times, countries with higher levels of technological development and human capital are naturally positioned to take advantage of new growth opportunities. Although China was underdeveloped compared to the world's most powerful nations at the beginning of the reform era, in recent years it has managed to significantly close the gap. One reason given for this progress is that China was open to integration with the world economy and took advantage of foreign direct investment to accelerate its growth. I want to analyze the dynamics of this FDI relationship and discuss the extent to which the Chinese parties in this relationship have actually accrued the benefits they expect to receive. In particular, much of the expected benefit will come from the transfer of best management practices by foreign multinationals to Chinese enterprises, thus developing China's human capital. I will examine the recruiting practices of multinational corporations in China to evaluate this level of benefit. Furthermore, these recruitment practices could also prove to be an indicator measuring the extent to which China's business development has reached developed world standards set by more economically dominant nations. The driving forces in the multinational-local party relationshipAs China has entered the reform era and embarked on the path of marketization and opening up the economy, the relations have...... half of the paper .... ..d.Works Cited Farrell, Diana and Andrew J. Grant. “China's Looming Talent Shortage.” International Management in China; (2005). Forster, Nick. "Expatriates and the impact of intercultural training". Journal of Human Resource Management 10 (2000): 63-78.McEllister, Robert. “Recruitment and Retention of Management Personnel in China.” International management in China: intercultural issues. Routledge, 1998. 98-110. Ng, Ying Chu. “Determinants of Training and Productivity Impact of Training in China: A Case of Shanghai.” Economics of Education Review 24 (2005). Sergeant, Andrew and Stephen Frenkel. “Managing People in China: Perceptions of Expatriate Managers.” Journal of World Business 33 (1998): 17-34.Tsang, Erik W. “Problems in Sino-Foreign Joint Ventures.” International Journal of Manpower 15 (1994): 4-21.Worldwide ERC. December 20, 2006. May 5.