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less research of this kind has yet been conducted in a non-western context. The purposes of this study were to explore how public relations professionals in multinational corporations (MNCs) in China practice government affairs activities at different levels of Chinese government and to develop a normative theory of strategic government affairs. Government affairs in this dissertation refers to the organizational function that encompasses issues management, policy formation, and relationship management. I applied the perspectives of public relations and political economy to examine the MNCs’ management of government affairs. I conducted 27 long interviews with executives or managers responsible for government affairs from the China offices of 25 MNCs. The MNCs cover several industries and three business entry modes. I also conducted a two-phase document review and informal interviews with Chinese journalists and public relations scholars and practitioners. My data suggested that with China’s socialist market economy and authoritarian political system, MNCs must interact with the government to strategically manag