**Abstract**

The chapter *'MNC Strategy in Contested Environments: Stay Put or Stay Foot?'* provides a contemporary view on the key questions relating to the strategic orientation of multinational corporations (MNCs) in emerging markets with a particular focus on China. Until recently, possible heterogeneity in business strategy and firm performance was concealed by the seemingly endless growth story in the emerging market arena. In view of increasingly harsh conditions, both in terms of host-country markets and institutions, foreign-invested firms may either choose to concede, conform, contest, compete, collaborate or co-create, to name a few conspicuous configurations. More than four decades have passed in which emerging markets have burgeoned as the preeminent growth drivers propelling the efficiency- and market-seeking MNCs to the forefront of cross-border economic activity. This development has been supported by global integration, multilateralism as well as institutional transition and reform. Hence, institutional factors, alongside external industry structures as well as internal firm resources, have been credited with having superior explanatory power in emerging economies. Moreover, high-level dynamism and discontinuities have always been the hallmarks of emerging markets. However, a new level of turbulence has emerged triggered by exogenous shocks such as Covid-19 as well as geopolitical conflicts and power shifts. MNCs face unprecedented challenges; and their commitment in terms of foreign direct investment (FDI) have been put to the test like never before. Decision makers in MNC subsidiaries and their headquarters ask themselves the question: *'Stay Put or Stay Foot?'*.

**Keywords:** international business strategy, strategic choice, typology-driven theorising, institutional theory, multinational corporation, China
