Strategy of Internationalization of China’s State-Owned Enterprises: a neo-institutionalism approach

• Main Authors: Wei-Lun Chang, 張維倫
• Other Authors: Kai Huang Yang
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/82199905791691668507

碩士 === 國立東華大學 === 公共行政研究所 === 94 === As the Chinese enterprises have been making aggressive investments overseas over the past years, internationalization has become a trend among Chinese enterprises. Since the Chinese government opted for an opening policy and implemented the “Bring in Policy” in 1979, the country has successfully attracted significant amount of foreign capital to China. As of late 2004, foreign direct investment inflows to China reached US$2,454.67 billion. In order to launch more initiative and make its businesses more active and competitive in the international marketplace, China proposed the “Goes Global” Strategy in 2000 as a way to upgrade its economic development, when China was admitted to WTO. With regards to China’s direct investment overseas, it grew from US$277.68 billion in 2000 to approximately US$ 388.25 billion in 2004. China has become a major investment player in more than 160 countries around the world. Compared to other developing countries, China has grown remarkably. In this study, With the reference literatures, it’s clarify the main characteristics of China’s internationalization as follows: 1. State-owned enterprises, SOE, are relatively privileged investors. 2. More investments are being made in developing countries. 3. Diversified investment activities, though energy and manufacturing industries remain dominant. especially High-Technology industry. 4. M&A remains a key investment strategy. In the process of internationalization, the Chinese Government plays leading role, as it helps Chinese enterprises expand in the international marketplace. However, the key element of its internationalization – competitiveness of state-owned firms remains to be a key question. On the other hand, the impact of internationalization is another key issue in this study. Furthermore, some of these enterprises are engaged in long-term business relationships with Taiwanese firms. As such, the way it goes international may create impacts on Taiwan’s politics and economy.