Chinese Multinationals

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. Contents: Corporate Strategies of Chinese Multinationals (Z-M Jin); China's Go Global Policy (Z-X Li); China's Outward Foreign Direct Investment (Z-X Li); The Internationalization Process of Chinese Multinationals (R-P Kang); International Marketing Strategies of Chinese Multinationals: The Experience of Bird, Haier, and TCL (Z-H Hu & G Wang); Technology-Based Competition and Chinese Multinationals (J-P Larçon & G Barré); Innovation and Knowledge Transfer in Chinese Multinationals (D-H Li); Corporate Culture and Organization of Chinese Multinationals (Y-H Wang); Chinese Multinationals and Global Value Chains Lenovo (F Duhamel); Alliances, Joint-Ventures and Chinese Multinationals (P Dussauge). CONTENTS......Page 12 Forword by Liu Chuanzhi......Page 8 Preface by Zhao Chunjun......Page 10 Acknowledgment......Page 18 About the Authors......Page 22 About the Editor......Page 26 Introduction and Organization of the Book......Page 28 1. Strategic Management in Chinese Enterprises......Page 32 1.2. Corporate Strategy in Chinese Enterprises......Page 33 2.1. The Logic of Integration......Page 35 Case 1: Horizontal and Vertical Integration of Shangai Baosteel......Page 36 Case 2: Horizontal Integration at Tsingtao Beer......Page 37 2.3. Lessons from Integration......Page 41 3.1. The Logic of Diversification......Page 43 Case 1: Haier Diversi.cation Strategy......Page 44 Case 2: Hisense Diversi.cation Strategy......Page 45 Case 1: Apollo Diversi.cation Strategy......Page 47 3.4. Lessons from Diversification......Page 48 4.1. The Logic of Globalization......Page 50 Case 1: Wahaha Globalization Strategy......Page 52 Case 2: Wanxiang Globalization......Page 53 4.3. Lessons from Globalization Strategies......Page 54 References......Page 60 1.1. National Goals and Company Objectives......Page 62 1.2. The Chinese Economy and International Investments......Page 64 2.1. Developments Stages of China’s Overseas Investment Policy......Page 69 2.2. The Chinese System of Administrative Examination and Approval......Page 72 2.3. The Need for Reforms......Page 74 2.4. Promoting China’s Outward Investment......Page 75 References......Page 79 1.1. China’s Foreign Trade......Page 80 1.2. International Contracting Projects and Labor Export Services......Page 83 1.3. China’s Outward Foreign Direct Investment (FDI)......Page 87 1.4. Cross-Border M&A......Page 92 1.5. Overseas Listing of Chinese Enterprises......Page 93 2.1. Large Corporations......Page 97 2.2. Private Companies and SMEs......Page 99 2.3. Challenges Ahead......Page 101 2.4. Chinese Emerging Multinationals......Page 102 2.5. Policy Issues......Page 104 References......Page 106 4. The Internationalization Process of Chinese Multinationals Kang Rongping......Page 108 1. Initial Investments and Goals of Chinese Companies......Page 109 1.1. Three Internationalization Paths......Page 112 1.2. International Vision and Corporate Goals......Page 113 2.1. Lessons from the Experience of Foreign Multinationals......Page 118 2.2. Chinese Multinationals in the Age of Globalization......Page 119 2.3. The Experience of Overseas Chinese Corporations......Page 121 2.4. Building “Prior Competitive Advantage” versus “Internationalization First”......Page 122 2.5. The Acceleration of Chinese Companies’ Internationalization Process......Page 123 2.6. Lessons from the China–Japan Comparison......Page 125 References......Page 128 5. International Marketing Strategies of Chinese Multinationals: The Experience of Bird, Haier, and TCL Hu Zuohao and Wang Gao......Page 130 1.1. Competition in the Domestic Market and the Need forGrowth......Page 131 1.3. Economies of Scale and Relative Cost Advantages......Page 132 1.4. BuildingWorld-Famous Brands......Page 133 2.1. Bird’s Foreign Market Entry Strategies......Page 135 2.2. Haier’s Foreign Market Entry Strategies......Page 137 2.3. TCL’s Foreign Market Entry Strategies......Page 139 2.4. Characteristics of Foreign Market Entry Strategies......Page 141 3.1. BIRD in India and in Europe......Page 142 3.2. Haier’s Strategy in Developed Countries......Page 145 3.3. TCL in Vietnam, India and the Global Market......Page 148 3.4. Characteristics of International Marketing Strategies......Page 154 4. Conclusion......Page 156 References......Page 157 1.1. The New China’s Innovation System......Page 158 1.2. China’s High-Tech Clusters......Page 162 1.3. China’s Science-Driven Companies: Tsinghua Holdings......Page 164 2.1. Technological Innovation Capabilities: Qingdao Hisense Electronics......Page 168 2.2. China’s Industrial Standards: China 3G......Page 172 2.3. China’s Telecom Industry: Foreign Competitors and National Champions......Page 173 2.4. The China–India Information Technology Link......Page 176 2.5. China’s Telecom Vendors, ZTE, and Huawei’s Go Global Strategy......Page 177 3. Conclusion......Page 179 References......Page 180 7. Innovation & Knowledge Transfer in Chinese Multinationals Li Donghong......Page 182 1. The Knowledge Transfer Imperative......Page 183 2.1. The Knowledge Transfer Process......Page 186 2.2. The Focus on Developed Economies......Page 188 2.3. Key Processes for Knowledge Transfer......Page 189 3. Managing Risks......Page 191 3.1. Major Risks Faced by Chinese Companies......Page 192 3.2. Facilitators of Knowledge Transfer......Page 195 References......Page 196 8. Corporate Culture and Organization of Chinese Multinationals Wang Yihua......Page 198 1. Organizational Capabilities, Property Rights, and Corporate Culture......Page 199 1.1. Tsingtao Beer: International Capabilities and Strategic Alliance......Page 200 1.2. Wanxiang’s “Human-Centered” Corporate Culture......Page 203 1.3. The “Basic Law” of Huawei Technologies......Page 207 2.1. Stages of Organizational Development of Chinese Emerging Multinationals......Page 211 2.2. Wanxiang’s Acquisition and Integration Policy......Page 212 2.3. Huawei Technologies’ Transnational Capabilities......Page 218 References......Page 221 1. Introduction......Page 224 2. Chinese Firms’ Strategic Advantages and Limitations......Page 225 2.1. The Lenovo’s Example......Page 226 3.1. Reconfiguration of Global Value Chains......Page 228 3.2. Complementarities of Value Chains......Page 229 3.3. The Acquisition of the IBM PC Division by Lenovo......Page 230 4. Implications of Foreign Acquisitions for the Chinese Firms......Page 233 5. Conclusion......Page 236 References......Page 237 10. Alliances, Joint-Ventures and Chinese Multinationals Pierre Dussauge......Page 238 1. Joint-Ventures for Technology Acquisition......Page 239 2. Joint-Ventures for Foreign Market Entry......Page 244 3. Joint-Ventures and Natural Resources......Page 251 4. Internal Rivalry within Alliances......Page 253 References......Page 257 Conclusion: China’s Unique Advantage......Page 260 Annex 1......Page 16 Annex 2......Page 268 Abbreviations......Page 282 Tables, Figures and Boxes......Page 286 Bibliography......Page 288 Index......Page 290 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.--pub. Website. Foreword / Liu Chuanzhi -- Preface / Zhao Chunjun -- Corporate Strategies Of Chinese Multinationals / Jin Zhanming -- China's Go Global Policy / Li Zhaoxi -- China's Outward Foreign Direct Investment / Li Zhaoxi -- Internationalization Process Of Chinese Multinationals / Kang Rongping -- -- International Marketing Strategies Of Chinese Multinationals : The Experience Of Bird, Haier, And Tcl / Hu Zuohao And Wang Gao -- Technology Based Competition And Chinese Multinationals / Jean-paul Larcon, Genevieve Barre -- Innovation & Knowledge Transfer In Chinese Multinationals / Li Donghong -- Corporate Culture And Organization Of Chinese Multinationals / Wang Yihua -- Chinese Multinationals And Global Value Chains : Lenovo, A New Global Leader In The Pc Industry / Francois Duhamel -- Alliances, Joint Ventures And Chinese Multinationals / Pierre Dussauge -- Conclusion: China's Unique Advantage. Editor, Jean-paul Larçon ; Foreword By Liu Chuanzhi. Efmd. Includes Bibliographical References (p. 257-258) And Index. Examines the rise of Chinese companies in international markets. This book provides an 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