Outward Foreign Direct Investment of Chinese Enterprises: Review and Analysis
School of Engineering, Deakin University, Waurn Ponds campus, Geelong, Australia
- *Corresponding Author:
- Yanan Wang
School of Engineering, Deakin University
Waurn Ponds campus, Geelong, VIC 3216. Australia
Tel: +61 3 99032757
E-mail: [email protected]
Received: August 03, 2015 Accepted: August 24, 2015 Published: August 26, 2015
Citation: Wang Y (2015) Outward Foreign Direct Investment of Chinese Enterprises: Review and Analysis. Ind Eng Manage 4:170. doi:10.4172/2169-0316.1000170
Copyright: © 2015 Wang Y. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This paper examines the unique motivations and strategies for outward foreign direct investment (OFDI) undertaken by Chinese multinationals, and addresses the challenges associated with these unique motivations and strategies. The findings show that Chinese OFDI is significantly driven by strategic asset seeking, and state ownership serves as a unique type of ownership advantages. Chinese multinationals typically use aggressive modes such as wholly-owned subsidiaries and acquisitions to enter foreign markets, but the associated challenges of those aggressive modes in post-entry integration are not negligible. This paper provides a comprehensive view on theory of Chinese OFDI and offers practical guidance for Chinese multinationals in their global expansion by outlining the strategies and challenges of Chinese OFDI.