Human Resource Development in China during the Transition to a New Economic System

China's economic development has been negatively influenced by its underdeveloped human resources since the People's Republic of China (PRC) was founded in 1949. The underdevelopment has been caused by various factors, such as China's highly centralized economic planning system and inadequate development in liberal and vocational education. In order to reverse the situation, many radical changes have been brought in since the economic reforms of late 1978. Focusing on the past and current human resource development (HRD) in China's manufacturing sector, this paper will identify the state of HRD in China, highlight changes in HRD during the period of transition to more market-oriented economic systems, and discuss its impact on business and management in China.