China’s global influence set to grow
CHINESE investment in foreign enterprises has grown by 25.6% to $95.8bn since 2000 and is set to grow further, according to research.
The study, which was led by Peter Buckley, professor of international business at Leeds University, shows that while China’s foreign investment still only represents 0.6% of the world’s total foreign direct investment the country is quickly emerging as a significant player.
Prof Buckley said: “Chinese multinationals can no longer be regarded as apprentices on the international stage, investing primarily in the developed countries to obtain intellectual property and to support the export function, or to learn from joint venture partners.
“Rather, a small but growing number of Chinese multinationals are becoming truly transnational, acquiring not only the confidence but the knowledge, resources and capabilities needed to co-ordinate international activities and compete effectively for market share in both developed and developing countries.”
Although the report shows that motives for foreign investment are the same for Chinese firms as their Western counterparts such as gaining control of raw materials and reducing costs, it highlights a growing interest in established brands, intellectual property and technology.
The study cites recent examples such as China Bluestar’s acquisition of Belgium’s Adisseo brand from Drakker Holdings; Nanjing Automobiles acquisition of iconic British motoring marque MG and Lenovo’ acquisition of IBM’s Think brand.
