R&D managers in China experienced significant changes in the past decade, in particular because of Government policies of economic reform and opening to the outside world. These developments have brought about a number of rather specific R&D management issues and problems. The paper addresses the main problems faced by R&D managers in China. First, the current situation of R&D management in China is discussed, as well as the future developments. The paper then presents a case study of the CISRI (Central Iron & Steel Research Institute), a large comprehensive R&D organisation in Beijing. The analysis leads to the critical issues in CISRI's R&D management. After that, a further investigation is described into the trends of Chinese R&D management. The outcomes described focus on the future of R&D management in China as well as on the integration of Western R&D management theory in China. The paper concludes with the major issues and recommendations for the further development of R&D management in China.