This paper examines the issue of transferring Western management knowhow to China, focusing on the context, content and constraints of the transfer. A model of the transfer of management knowhow is developed which contains five closely-related stages: selection, adaptation, application, evaluation and integration. Factors which influence management transfer are identified as environmental, organisational, and cultural and behavioural; while cultural constraint are discussed in detail. It concludes that China cannot depend on the West for the solutions to its problems but develop its own indigenous knowhow by blending the best of both East and West