The roots of opposition are tied to the very beginnings of reform. In 1978, China
had no foreign investment and very little trade. Contrast that with the present, where
China has been the largest recipient of direct foreign investment in the developing world since 1992, and is among the top ten trading countries in the world.3
Although the reforms that opened China to international markets were gradual, by the mid-1990s foreign invested enterprises began to gain serious market share. Coca Cola and Pepsi had basically taken over the entire soft drink market in China, and the presence of others like Procter & Gamble and Volkswagen was ubiquitous with products and advertising. In addition, multinationals looked invincible and overpowering. Some popular examples were that Microsoft’s capitalization was one and a half times the size of both the Shanghai and Shenzhen stock exchange put together, and Wal-Mart’s annual sales represented 40 percent of China’s total sales revenue