The Internationalisation of Chinese Firms: Growth, Motivations and Strategies

The Institutional Influence on the Location Strategies of Multinational Enterprises from Emerging Economies: Evidence from China's Cross-border Mergers and Acquisitions

“…The Chinese government's policy direction on OFDI seems to have influenced Chinese MNEs' location choices and motivations of internationalisation (Quer et al, 2012;Richet, 2013;Yang et al, 2009). As discussed above, Chinese FDI follows the government's catalogue which directs where and how FDI should be made.…”

Maturing Strategies of Russian Multinational Companies: Comparisons With Chinese Multinationals

“…It is often stressed that the growth of Chinese MNCs has been boosted by a preliminary substantial inward FDI of Western MNCs into China since 1979 in tune with the so-called LLL -Linkage, Leverage, and Learning -approach (Matthews, 2002). Richet (2013) stresses the importance of instilling spillovers, incubators and learning by doing business with foreign investors in mainland China as a push factor in the emergence of Chinese MNCs. The former USSR opened up to inward FDI comparatively later, in 1987, and the LLL process was much slower in the 1990s given the bad domestic investment climate in Russia (Andreff, 1999a Chinese MNCs also invest in transition economies though the latter"s share in Chinese OFDI is small (3% of 2010 overall stock) but its growth rate is the fastest in the past recent years, concentrated in the CIS and Mongolia (Korniyenko and Sakatsume, 2009), with an increased interest in Central Asia (Kazakhstan, Turkmenistan).…”

“…However, some Chinese MNCs have failed in their M&A strategy, for instance TLC and SAIC in South Korea. It is reported that 90% of the 300 trans-border M&As achieved between 2008 and 2010 failed and translated into a 40% fall in the stock value of those companies involved (Richet, 2013). Thus, in presence of very high country risk, Chinese MNCs prefer greenfield investment.…”