Chinese state-owned enterprises go global

摘要

The growing Chinese ODI around the world is viewed with both fervor and fear. Due to lack of communication, many people do not have an accurate understanding of the globalization of Chinese economic power. Whereas some view the rise of China as a contributing factor to recent hardships, others welcome Chinese business with open arms. Even within the business community, there is a misconception that Chinese companies are going to change the global business landscape overnight, and China will quickly overtake the USA economically and politically. In reality, China's ODI is still only a fraction of the world total, and it is reported that one-third of Chinese enterprises lost money on their foreign investments, and that 65 per cent of their joint-ventures failed (Tan, 2005). A reasonable approach is to view the rise of China's economic power from a business perspective. The growth of Chinese ODI will not be a zero-sum game if all sides can work together to explore opportunities for mutual economic benefits.