Chinese Multinationals

by Jean-paul Larcon (Editor)

Overview

This book examines the rise of Chinese companies in international markets during the last two decades of rapid expansion of the Chinese economy. The fruit of a collaboration between two leading business schools, HEC Paris and the School of Economics and Management of Tsinghua University, it provides a comprehensive overview of the strategies of Chinese multinationals in terms of international marketing and branding, M&As and international joint ventures, management of technology, organization and human resource management, etc.The strategies of several well-known companies are described in detail, including Baosteel, Bird, Haier, Hisense, Huawei Technologies, Lenovo, Nuchtech, Petrochina, TCL, Tsingtao Brewery, Wahaha, Wanxiang, etc.

Product Details

ISBN-13:	9789812835598
Publisher:	World Scientific Publishing Company, Incorporated
Publication date:	10/23/2008
Edition description:	New Edition
Pages:	300
Product dimensions:	6.00(w) x 8.90(h) x 0.70(d)

Table of Contents

Forword Liu Chuanzhi vii

Preface Zhao Chunjun ix

Acknowledgment xvii

About the Authors xxi

About the Editor xxv

Introduction and Organization of the Book xxvii

1 Corporate Strategies of Chinese Multinationals Jin Zhanming 1

1 Strategic Management in Chinese Enterprises 1

1.1 Strategy and the Chinese Economy 2

1.2 Corporate Strategy in Chinese Enterprises 2

2 Integration Strategies in Chinese Enterprises 4

2.1 The Logic of Integration 4

2.2 Cases of Integration: Shanghai Baosteel and Tsingtao Beer 5

2.3 Lessons from Integration 10

3 Diversification Strategies 12

3.1 The Logic of Diversification 12

3.2 Cases of Successful Diversification: Haier and Hisense 13

3.3 Cases of Unsuccessful Diversification: Apollo and Chundu 16

3.4 Lessons from Diversification 17

4 Globalization Strategies 19

4.1 The Logic of Globalization 19

4.2 Cases of Globalization Strategies: Wahaha and Wanxiang 21

4.3 Lessons from Globalization Strategies 23

References 29

2 China's Go Global Policy Li Zhaoxi 31

1 China After WTO Entry 31

1.1 National Goals and Company Objectives 31

1.2 The Chinese Economy and International Investments 33

2 Overseas Investment Policy and Administration 38

2.1 Developments Stages of China's Overseas Investment Policy 38

2.2 The Chinese System of Administrative Examination and Approval 41

2.3 The Need for Reforms 43

2.4 Promoting China's Outward Investment 44

References 48

3 China's Outward Foreign Direct Investment Li Zhaoxi 49

1 China's International Presence and Investment 49

1.1 China's Foreign Trade 49

1.2 International Contracting Projects and Labor Export Services 52

1.3 China's Outward ForeignDirect Investment (FDI) 56

1.4 Cross-Border M&A 61

1.5 Overseas Listing of Chinese Enterprises 62

2 Chinese Companies' International Challenges 66

2.1 Large Corporations 66

2.2 Private Companies and SMEs 68

2.3 Challenges Ahead 70

2.4 Chinese Emerging Multinationals 71

2.5 Policy Issues 73

References 75

4 The Internationalization Process of Chinese Multinationals Kang Rongping 77

1 Initial Investments and Goals of Chinese Companies 78

1.1 Three Internationalization Paths 81

1.2 International Vision and Corporate Goals 82

2 The Internationalization Pattern of Chinese Companies 87

2.1 Lessons from the Experience of Foreign Multinationals 87

2.2 Chinese Multinationals in the Age of Globalization 88

2.3 The Experience of Overseas Chinese Corporations 90

2.4 Building "Prior Competitive Advantage" versus "Internationalization First" 91

2.5 The Acceleration of Chinese Companies' Internationalization Process 92

2.6 Lessons from the China-Japan Comparison 94

References 97

5 International Marketing Strategies of Chinese Multinationals: The Experience of Bird, Haier, and TCL Hu Zuohao Wang Gao 99

1 Motivations for International Marketing 100

1.1 Competition in the Domestic Market and the Need for Growth 100

1.2 Opportunities Offered by the Global Market 101

1.3 Economies of Scale and Relative Cost Advantages 101

1.4 Building World-Famous Brands 102

2 Foreign Market Entry Strategies 104

2.1 Bird's Foreign Market Entry Strategies 104

2.2 Haier's Foreign Market Entry Strategies 106

2.3 TCL's Foreign Market Entry Strategies 108

2.4 Characteristics of Foreign Market Entry Strategies 110

3 International Marketing Strategies 111

3.1 BIRD in India and in Europe 111

3.2 Haier's Strategy in Developed Countries 114

3.3 TCL in Vietnam, India and the Global Market 117

3.4 Characteristics of International Marketing Strategies 123

4 Conclusion 125

References 126

6 Technology-Based Competition and Chinese Multinationals Jean-Paul Larcon Genevieve Barre 127

1 The Chinese Science and Technology System 127

1.1 The New China's Innovation System 127

1.2 China's High-Tech Clusters 131

1.3 China's Science-Driven Companies: Tsinghua Holdings 133

2 Business Strategies and Technological Capabilities 137

2.1 Technological Innovation Capabilities: Qingdao Hisense Electronics 137

2.2 China's Industrial Standards: China 3G 141

2.3 China's Telecom Industry: Foreign Competitors and National Champions 142

2.4 The China-India Information Technology Link 145

2.5 China's Telecom Vendors, ZTE, and Huawei's Go Global Strategy 146

3 Conclusion 148

References 149

7 Innovation & Knowledge Transfer in Chinese Multinationals Li Donghong 151

1 The Knowledge Transfer Imperative 152

2 Chinese Companies' Knowledge Transfer System 155

2.1 The Knowledge Transfer Process 155

2.2 The Focus on Developed Economies 157

2.3 Key Processes for Knowledge Transfer 158

3 Managing Risks 160

3.1 Major Risks Faced by Chinese Companies 161

3.2 Facilitators of Knowledge Transfer 164

4 Conclusion 165

References 166

8 Corporate Culture and Organization of Chinese Multinationals Wang Yihua 167

1 Organizational Capabilities, Property Rights, and Corporate Culture 168

1.1 Tsingtao Beer: International Capabilities and Strategic Alliance 169

1.2 Wanxiang's "Human-Centered" Corporate Culture 172

1.3 The "Basic Law" of Huawei Technologies 176

2 Globalization and Organizational Structures 180

2.1 Stages of Organizational Development of Chinese Emerging Multinationals 180

2.2 Wanxiang's Acquisition and Integration Policy 181

2.3 Huawei Technologies' Transnational Capabilities 187

References 190

9 Chinese Multinationals and Global Value Chains Lenovo Francois Duhamel 193

1 Introduction 193

2 Chinese Firms' Strategic Advantages and Limitations 194

3 The Impact of Western Firms Refocusing Efforts 197

3.1 Reconfiguration of Global Value Chains 197

3.2 Complementarities of Value Chains 198

3.3 The Acquisition of the IBM PC Division by Lenovo 199

4 Implications of Foreign Acquisitions for the Chinese Firms 202

5 Conclusion 205

References 206

10 Alliances, Joint-Ventures and Chinese Multinationals Pierre Dussauge 207

1 Joint-Ventures for Technology Acquisition 208

2 Joint-Ventures for Foreign Market Entry 213

3 Joint-Ventures and Natural Resources 220

4 Internal Rivalry within Alliances 222

References 226

Conclusion: China's Unique Advantage 229

Annex 1 231

Annex 2 237

Abbreviations 251

Tables, Figures and Boxes 255

Bibliography 257

Index 259