IntroductionThis essay reports on Japanese HRM1 practices used in subsidiaries in China.This essay is organized as follows: the first section focuses on HRM practices in Japan and their development. ; the second part focuses on the main differences between Japanese and Chinese HRM practices and the third and final part examines the problems that Japanese HRM practices face in their subsidiaries in China. Firstly, the focus will be on the Japanese HRM system and its characteristics, and in particular on the significant changes that occurred in the period 1960-1980 and from the decade of the “economic bubble”. The second section compares these characteristics with the Chinese HRM system, highlighting the commonalities and differences; This analysis is useful for understanding the main issues that Japanese companies face when operating subsidiaries in China. These questions are explored in the final section of this essay. Human Resource Management in Japan Human resource management is the process by which a company manages people to achieve a result (Keeley, 2001, 17). A country's HRM practices are strictly linked to its cultural, sociopolitical and physical environment. Culture is one of the most important aspects to consider when studying HRM practices; the influence of culture is essential throughout the HR cycle: selection, recruitment, feedback, evaluation and interviews (Kaminsky, 2002). HRM practices in East Asia are believed to be significantly influenced by Confucian values; Japan in particular manifests this paternalistic view of life with certain key elements, such as: lifelong employment, the importance of the employee's needs and the encouragement of team processes (Pucik and Hatvany 1983, cited in ...... middle of article ......like, 2002). As Beamish, Delio and Makino (2001: 89) point out, this ethnocentric style of management of multinationals can lead to few opportunities for local nationals, although in recent years there has been a slight shift in ethnocentrism. towards polycentrism in Japanese subsidiaries in China (Nakamura, 2001).ConclusionHRM practices in Japan have undergone numerous changes and reforms. In recent years, Japan has opened up to foreign markets and one of the countries with the most numerous subsidiaries is China. In China, Japanese HR management faces many problems, although most of them are not related to China itself but are related to HR practices used by Japanese companies overseas. Due to the growing importance of Chinese companies in the world and the constant evolution of its HRM, Japan is trying to find solutions to these problems, although it is not an easy task..