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Introduction It has been said that “the human resource is probably the last great cost that is relatively unmanaged”. Since this article was written in 1982, we are aware of the recognition for, and the implementation of, management and planning for this resource. The new emphasis on the human resource is probably a result of a change in attitude on the part of management.

This paper examines the recent quality movement in Greater China and the development of total quality management (TQM) since the 1980s in the following three aspects. First, China is determined to upgrade quality management at the enterprise level by a top‐down approach. The efforts of the PRC Government in establishing quality systems to comply with international standard is reviewed. The Provisional Total Quality Management Guide for Industrial Enterprises and the GB/T 19000 standard (the Chinese version of ISO 9000) for national standards and quality certification are examined. Second, at the implementation level, the development of TQM and other quality systems is found to be less than satisfactory. A brief review of major empirical studies regarding TQM practices in China’s state‐owned enterprises and collective‐owned township enterprises is carried out. Third, TQM practices in Hong Kong, a Chinese market‐oriented economy, are reviewed and compared with those in China to explore any possible implications emerging from the political integration of these two regions in 1997.