As more and more Chinese enterprises engaged in foreign direct investment (FDI) has become in the developed countries in particular, a crucial important issue needs to be addressed: What is the motivation of Chinese direct investment abroad, and what is its justification? Based on a detailed analysis of primary and secondary data sources, argues that when investing in advanced economies, Chinese multinational corporations (MNCs) are motivated primarily by the search for strategic resources and capabilities, and that the underlying … Read more »

As more and more Chinese enterprises engaged in foreign direct investment (FDI) has become in the developed countries in particular, a crucial important issue needs to be addressed: What is the motivation of Chinese direct investment abroad, and what is its justification? Based on a detailed analysis of primary and secondary data sources, argues that when investing in advanced economies, Chinese multinational corporations (MNCs) in the first line of the search for strategic resources and capabilities are motivated, and the underlying reasons for this asset -seeking FDI is the strategic needs. The examination of this premise will cause business practitioners on this important topic in new and innovative ways to think hopefully, making the identification of a suitable political and strategic response.
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Ping Deng
Source: Business Horizons
11 pages.
Publication Date: Jan 15, 2007. Prod #: BH223-PDF-ENG
Investing for Strategic Resources and Its Rationale: The case of outward FDI from Chinese companies HBR case solution

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