How Different Are Chinese Foreign Acquisitions? Adding An Indian Comparison

Huaichuan Rui, George Yip

Research output: Chapter in Book/Report/Conference proceedingChapter


This research demonstrates that the Chinese MNEs’ internationalization is more in line with the modern version MNE theories, especially the springboard perspective for EM MNEs (e.g. both explore advantages via internationalization. They do not follow traditional pace and pattern of foreign entry mode, and they tend to be imitators, fast followers or niche players). Such behaviour is not only pulled by the desire of acquiring asset and opportunities, but also fostered by government support, and impelled by intense competition. Moreover, the features of Chinese firms’ internationalization are closely related to the special characteristics of the environment of Chinese firms, which include at least (1) very large scale of domestic economy and market; (2) domestic market internationalising through entry of foreign firms; (3) tremendous cost advantages regarding labour, overhead, manufacturing, etc.; and (4) government support in many forms from diplomacy to finance. These country characteristics do not appear in many countries other than the other three members of the so-called BRIC group (Brazil, Russia and India), each of which have some but not all of these features. While the experiences of Indian comparators strengthen the argument that Chinese firms’ internationalization processes are closely related to the special characteristics of the environment of emerging markets, they do not suggest that all the EM MNEs should pursue the same strategy of internationalization.
Original languageEnglish
Title of host publicationForeign Direct Investment from Emerging Markets: The Challenges Ahead
EditorsK.P. Sauvant, W.A. Maschek, G.A McAllister
Place of PublicationNew York, USA
PublisherPalgrave Macmillan
ISBN (Print) ISBN 9780230100213
Publication statusPublished - 2010


  • Foreign Acquisition, Emerging market, MNEs, China, India

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