China’s outward investment and multinational enterprises

Project: Research

Project Details


The fast growing Chinese FDI in recent years has caused worldwide tension over their ability to compete for a share in world resources. This research concerns China’s rapidly growing outward foreign direct investment (FDI) in recently years, aims to understand the capacity of the Chinese investing firms and the impact they make to the host countries. Ten well known Chinese firms, which invest overseas heavily, have been selected to carry out case studies and interviews. Current researches on China’s outward investment commonly indicate that Chinese firms normally pursue government mandate rather than corporate strategy, and do not possess the same competitive advantage as traditional MNCs had when going overseas, they also state that there are certain competences peculiar to Chinese firms which contribute to their success. However, none of these researches have comprehensively examined whether the Chinese MNEs possess clear corporate strategy, what their competitive advantages and disadvantages are, and what the consequent impact could be of such investment and strategy on the real business world. This research is to fill this gap by examining the strategic intent, competitive advantages (CAs) and disadvantages (CDAs) that the Chinese firms possess in making foreign investment, benchmarked by multinational resource firms where applicable. Based on this examination, the resulting impact on global and Chinese resource markets will also be analysed.
Effective start/end date1/08/05 → …