Through administrating questionnaires to managers in Japanese foreign affiliates who used to work in state-owned enterprises (SOE), this paper intends to find out the effectiveness of these managers' SOE experiences in their current employment. Empirical evidence shows that the respondents' educational background, on-the-job training and work experiences in the state-owned enterprises in general help them climb the career ladder in the Japanese companies, thereby proving the effectiveness of their SOE experiences or skills. China's reform and opening up policy provides these managers with opportunities to start a new career in foreign companies, and the human capital accumulated in the planned economy is brought into full play after the economic transition.
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