This discussion paper is a literature study reviewing the development of human resource management in China, with a particular focus (where possible) on the automobile industry. It presents the Chinese context for HRM discussing the normative debate about the adaptation of Western management methods and the heritage of Chinese philosophy and values, and it describes the economic, cultural, and transition-specific factors which influence HRM in China. In more detail, the paper deals with work organization analyzing to which extent companies transfer Western work organization systems to China and describing Chinese concepts of teamwork and leadership. As to personal development, it deals with Chinese approaches to recruitment and career systems also describing the debate about skill formation in the Chinese industry. Wage and incentive systems in China are analyzed, and the system of employee interest representation in China and the role of the All-China Federation of Trade Unions are presented.