SUMMATIVE ASSIGNMENT – East Asian Business & Management
Answer the following questions.
“Critically evaluate whether and how Chinese MNEs benefit from international strategic asset seeking FDI related acquisitions. Draw from empirical evidence and case examples where appropriate.”
The Internationalisation of Chinese Business – key reading and summary
In these lectures we will look at the debates surrounding the emergence of China’s MNEs. In recent times outward FDI from Chinese business has increased considerably.
It is argued by some that conventional explanations for MNE formation cannot be used to explain the emergence of Chinese MNEs. This is because it is thought that they are given extensive state support (via, for example, the state-run banking system) and are encouraged to acquire such things as advanced technologies, world recognized brands and western management teams.
While there is a lot of fuss about the possibility of Chinese MNEs behaving in this way (and attempting to acquire so-called ‘strategic-assets’) there is far less solid evidence that they are actually behaving so.
In fact, it is very difficult to map the activities of many Chinese MNEs owing to their extensive use of offshore tax havens (like Hong Kong, BVI and the Cayman Islands), which we will discuss in more detail.
In these lectures we explore some of the reasons for Chinese OFDI and the emergence of Chinese MNEs, paying particular attention to the activities of a number of private sectors MNEs that route their OFDI through offshore tax havens (and therefore fall under the radar of most studies so far).
