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This is the second of a two-case series (399-111-1 and 399-112-1). The (A) part describes key events in the development of Wartsila Diesel''s marine engine business in China, from its first efforts at approaching the Chinese market in the early 1980s to the situation in late 1993. The (B) part describes the development up to early 1998. The case aims at raising the following issues for class discussion: (1) the role played by different actors involved in the exports of industrial goods to China; (2) alternative operational modes in China; and (3) the relationship between western firms and different governmental organisations.