CCG’s Blue book Report on Chinese Enterprises Globalization (2017) was published by the Social Sciences Academic Press in Beijingon Nov. 8, 2017. Deputy Editor in Chief of Social Sciences Academic Press Cai Jihui and CCG President Dr. Wang Huiyao jointly presented the report.
According to Report on Chinese Enterprises Globalization (2017), despite the stagnation of global economy and decline of global foreign investment, China’s total outbound investment in 2016 reached US$ 183 billion, or 44% higher than 2015, making China the second largest investing country in the world for the two years in a row.
In 2015,China’s investment in America surpassed the US FDI in China for the first time, and it continued to grow since then. Last year, they made 156 investments in the United States, with a total value of US$ 85.02 billion, 76% higher than 2015.
The Year 2016 has witnessed the structural change of the world economy and China’s economic boom. The 13th Five-Year Plan set a right track for China’s development, andthe 19th CPC National Congress outlines a blueprint for the future ofthe socialism with Chinese characteristics. It particularly reinforces China’s commitment to globalization and the building of a more open economy. President Xi Jinping, in his speech, emphasized that Chinawill continue to expandforeign trade, foster emerging industries, support foreign investment, and seek international cooperation. By doing so, Chinawillcreate more opportunities for economic cooperation and enhance international competitiveness.
This is the fourth time that CCG published the annual report about Chinese enterprises globalization. This year, the reportsummarizes the features of global foreign direct investment in the recent years. Building upon these, the report recapitualtes the successful experience of Chinese companies’ foreign investment in the different fields, analyzesthe issues and challenges to them, and offers solutions to these problems.
The report has five chapters, includingexecutive summary, evaluation, research, recommendation and case studies. It provides theoretical and practical guidance to Chinese companiesto design foreign investment strategies, identify the opportunities and challenges in globalization, and enhance their global competitiveness.
According to the Report on Chinese Enterprises Globalization (2017), global economy has been recovering at a slow ratein 2016, while global foreign direct investment remainedstable. Even so, China achieved outstanding economic performcance last year, the first year for the implementation of the13th Five-Year Plan. China’s GDP grew 6.7% yoy to US$74.4 trillion, the highest annual growth rate in the world.TheFDI increased by 44%,a growth rate that is only second to America. Europe was the largest destination for China’s FDI, and cross-border M&A remains the major approach for investing abroad. High-end production and intelligent manusfacturingattracted more interest of Chinese investors. America remains the most popular destination of China’s outbound investment and it has become more diversified to cover more industrial sectors.
By far, CCG has published the ranking of Chinese globalized enterprises for four years in row, usingits own evaluative system and indicators thatcan rate companies’ globalization progress, in terms of development strategies, talent acquisition, markets size, and social responsibilities. Based on the datacollected from 300 companies going abroad, the new reportcompiled the ranking list of the “Top 50 Chinese companies going global,” the “Top 50 emerging Chinese Companies Going Global”, the “Top 10 companies for cross-border M&A activities,and the “Top 10 pioneering companies inB&R initiative”. In addition, CCG will award companies this year for their innovation capacity, brandstrategies, and contributions to the process of Chinese enterprises globalization.
CCG has, for years, conducted the research on Chinese companies’ FDI. Through questionnaires, interviews, and forums, CCG collected first-hand information about Chinese companies’ outbound investment. Among all the 910 questionnaires collected by CCG in 2017, 73% of the companies support the “Belt&Road” Initiative and have strong interest to investment in the countries along the route. Many of them have already involved in the “Belt &Raod”Initiative in multiple ways like exporting and setting up joint venture. The research also shows that the concern about political risks still constrain the rise of outbound investment,although the Belt and Road countries have abundant natural resources and low operational costs.
Moreover, the report is focused on variousaspects of Chinese companies’ globalization process, and proposes a number of principles, methods and solutions to any potential issue Chinese companies may encounter in globalization, including the advice on sustainable development, the strategiesto participate in the “Belt & Road”Initiative andto avoid potential and legal risks.
The highlight of the 2017 Report on Chinese Enterprises Globalization is as followed:
1. The global FDI in 2016 slightly dropped, while the capital flew into developed countries increased moderately. Driven by cross-border M&A deals, Europe received most foreign investment. The emerging high-tech industries such as advanced manufacturing and intelligent manufacturing became new magnets for foreign investment.
Globalization appears to suffer from some setback, as FDI has slightly declined along with global economic slowdown.
According to CCG’s 2017 Bluebook Report on Chinese Enterprises Globalization, global FDI still has a long way to go before it can regain a continuous upward momentum. After a strong rebounce in 2015, global FDI went down by 2% in 2016 to US$1.75 trillion.
Based on CCG analysis, the main reason for the decline is the global economic slowdown, combined with rising de-globalization trend in developed countries last year, which was reflected from the refugee crisis in Europe, Brexit, and the US presidential elections. The Trump administration, once sworn in, discarded TPP and other ongoing free trade agreement negotiation and announced to raise tariff with all major trade partners, in an effort to boost domestic industrial growth and job creation. As a matter of fact, his policy initiatives are rooted from trade protectionism and will cause big turbulence that threatens the world trade order. The refugee crisis is a great challenge to the value and policies of EU integration. Brexit represents the pessimistic perception and doubt about European integration that has surged since the European financial crisis. Trump’s successful election signaled rising de-globalization trend. These setbacks in the globalization process is another factor that caused the decline of global FDI in 2016.
- The investment in developed countries slightly picked up; Europe, Asia and North America are the top three destinations of global investment.
In 2016, over US$1 trillion of investment flew into developed economies, registering a 7.3% growth from 2015 and accounting for 59% of the total global investment. Europe, among all, attracted the highest amount of the investment driven by the increase of cross-border M&A activities, which took up 1/3 of the total, following by Asia (28%), North America (26%), Latin America and Caribbean (9%), and Africa (4%).
- Service industry receives more than half of global FDI, while more investment is moving towards manufacturing industry, as advanced and intelligent manufacturing attract more interest of investors.
Sectorwise, service industries including finance, trade & commerce and telecommunication received 51% of the total global FDI in 2016, slightly lower than last year but remaining the most preferred sector for investment. Manufacturing industry continues to receive more investment and already accounted 41% of the total, driven by several large cross-border M&A transaction in the electric and electronic products, food and tabacco industries. The remaining 8% flew into agricultural industry. The declining primary product prices last year has led many raw material and energy MNCs to cut down their overseas investment.
Based on CCG analysis, the rise of the FDI in advanced and intelligent manufacturing is fundamentally driven by developed countries’ reindustrialization momentum which is focused on manufacturing technology innovation. US President Trump has proactively pushed forward his policies to revive the domestic manufacturing industry and establish partnerships to enhance advanced manufacuturing. Also, Europe’s “Industry 4.0” strategy and China’s “Made in China 2025” are both such top-down initiatives to drive innovation.
- Global cross-border M&A transaction reached a record high level, while greenfield investment growth is slowed down; China has surpassed the United States to become the most active nation in overseas M&As.
In 2016, the cross-border M&A transaction around the world has increased 18% to a record high level at US$869 billion in value. The M&A investment in all the industries recorded a growth. In comparison, greenfield investment lost its momentum and only increased 7% to US$828 billion in 2016. Among all industries, the greenfield investment in manufacturing declined 9% to only US$292 billion, showing the investors’ lack of interest in production.
CCG believes Chinese companies have been a major driving force for the rise of cross-border M&A transaction, contributing US$200 billion to the global total. Due to the tightening restrictions in some developed countries on outbound investment, the greenfield investment in primary industries started to slow down, while picking up in the sectors such as technology innovation and advanced manufacturing.
- International policies, in general, are making it easier and freer to invest overseas, although some countries have strengthened foreign investment restriction and scrutiny lately, bringing more challenges and uncertainties to Chinese companies’ outbound investment.
An increasing number of outbound investment policies have been rolled out between 2007 and 2016. According to the statistics of the United Nations Conference on Trade and Development, a total of 58 countries around the world released 124 laws and regulations on foreign investment in 2016，25% higher than 2015. Among all, 84 policies, or 68% of the total, aim to promote freer and easier investment. Meanwhile, the number of the restricting policies on the investment abroad was also on the increase to 22, or 18% of the total. The remaining 14% of the policies released are neutral.
As many developed countries are tightening their restriction and scrutiny on foreign investment, Chinese companies are facing greater uncertainties in their outbound investment and therefore developed a strong need for political risk prevention.
2.China’s outbound investment continued to grow but the growth was slowed down in 2016; across-border M&A remains the main outbound investmet method; Chinese companies still have vast interest in investing in America and expand their investment to a broader range of sectors to form a whole industry chain abroad; Chinese companies are accelerating the integration process in globalization.
- China’s outbound investment continued to grow, but at a lower rate in 2016
According to CCG statistics, there have been 456 M&A deals conducted by Chinese companies in the first half of 2016, but only 316 deals in the second six months.The reason for the slowdown is Chinese government’s strengthened rules for outbound investment review and approval and foreign exchange control and some developed countries’ increased restrictions on foreign investment.
Nevertheless, Chinese companies have maintained the upward momentum in outbound investment for 10 consecutive years, which reached US$170 billion in 2016, or seven times more than 2006.
- In terms of geographic preference, Europe is the top destination of China’s outbound investment, followed by North America and Asia Pacific. The United States remains the most preferable country for Chinese investors.
Based on the data in 2016, CCG report points out China’s outbound investment is concentrated in Europe (35%), North America (29%) and Asia Pacific (25%). Among all investment deals, 221 took place in Europe that worth US$111.4 billion, and 175 in North America that worth US$90.8 billion. In Asia Pacific, Chinese companies invested in 148 projects with a total value of US$60.2 billion.
Among all the countries, the United States remains Chinese companies’top choice for outbound investment. In 2015, for the first time, China’s outbound investment exceeded the US FDI in China, and the strong momentum persisted last year. Most of their investment in the United States was made through M&A, driven by the need to elevate reputation and expand participation in global industry chain integration. However, due to the rising populism trend and tightening national security review by the Committee on Foreign Investment in the United States (CFIUS) on the foreign investment in some specific industrial sectors, Chinese companies are compelled to raise their awareness of risk control.
- The Chinese companies that undertake outbound investment are becoming more diversified; privately-owned companies become a leading force, as the staet-owned companies are facing stricter scrutiny both at home and abroad.
In 2016, privately-owned companies continued to grow as a major force in outbound investment. According to CCG statistics, they have made 395 investment deals, more than 2015, although the total value slightly decreased.
CCG believes that the stepped-up effort of the Chinese government to review SOEs’ outbound investment in 2017, privately-owned companies may surpass them in terms of investment value and officially become the No.1 force in China’s outbound investment. That being said, it is undeniable that privately-owned companies still face more barriers and difficulties in passing the review for outbound investment, gaining the permit to bring foreign currency abroad, accessing loans for overseas M&A deals, and understanding outbound investment laws and regulations. Therefore, it is important to improve outbound investment legislation, simplify review and approval procedure for outbound investment, and adjust foreign exchange control policies to grow privately-owned companies’ role in China’s global expansion.
- Cross-border M&A remains the main approach for Chinese companies’ outbound investment, while greenfield investment started to decrease.
Starting 2012, the number of Chinese companies’ cross-border M&A deals has been continuously increasing and reached 772 in 2016. The greenfield investment, on the other hand, decreased from 2015 in terms of both volume and value. Moving on, driven by the 13th Five-year plan and “Made in China 2025” initiative, Chinese companies will be more focused on increasing brand influence, accessing core technologies and achieving win-win outcome through M&A activities.
In the recent years, Chinese companies’ greenfield investment has gradually shifted from developing countries to developed countries, to access more global market, resource, advanced technology and management experience and enhance their overall international competitiveness.
- Advanced manufacturing remains the most preferable sector for Chinese companies’ outbound investment; along with products, Chinese companies also started exporting “Made in China” standards and raised its voice in the global market.
In 2016, manufacturing industry was still a major sector for Chinese companies’ outbound investment, accounting for 1/3 of the total, especially in the developed countries in Europe. In addition, China started exporting Chinese standards in various industries. For instance, Chinese companies contracted a number of port construction projects abroad, which improved China’s construction standard and push forward globlization of China’s technology.
Based on CCG analysis, as China’s economy is becoming consumption-driven, instead of being investment and export – driven, the focus of Chinese companies’ outbound investment will shift from energy to high-end manufacturing, brand and technology. The Chinese companies such as Huawei and ZTE have emerged as new power in international standard setting and made China’s voice heard in global market.
- Energy and infrastructure companies are the major players in outbound investment as they can meet the primary need for livelihood in the hosting countries, while privately-owned science-tech companies are emerging as a new force in the Belt and Road Initiative implementation.
Energy and infrastructure building are among the sectors in which Chinese companies went abroad first, followed by the upstream and downstream companies on the industrial chains. Science-tech, finance and other services companies are become new emerging power in China’s outbound investment. \
CCG believes that the slight decline in China’s investment along the Belt and Road in 2016 was resulted from its economic structural transformation that diverted a lot of investment towards developed countries in Europe and North America. Most investment in the Belt and Road countries are in the large-scale industrial sectors such as energy, transportation, infrastructure and telecommunication that usually take a long term before generating profit.
As infrastructure conditions improved along the Belt and Road, more privately-owned science-tech companies ventured in the countries along the routes. New opportunities will be created as the Chinese companies in various sectors could collectively and collabratively develop their business abroad.
- Chinese companies has attached more importance to the layout of a full industrial chain abroad to strengthen its overall international competitiveness.
Nowadays, the main purpose of Chinese companies’ outbound investment is to obtain advanced R&D technology, strong brand influence, high-level talent, overseas resource, marketing channels and modern management methodology. They are no more satisfied with the export of labor-intensive products, but want to lay out a complete industrial chain globally, to strengthen the competitiveness of each component. CCG believes more Chinese companies will stand out in the global market competition as they become able to access and allocate the resource along their industrial chain around the world.
- Chinese companies attached more importance to the localization strategy in their overseas operation to ensure the mutual benefit and win-win outcome with local society.
Based on CCG’s survey in 2016, a majority of Chinese companies started to realize the importance of localization strategy and coordinating their business activities with local agenda. To succeed globally, a company needs to win locally. Unlike beofre, nowadays Chinese companies have significantly raise their awareness and capacity to communicate with local society and people as well as third-party organizations. They are able to adjust the busienss strategies and activities based on local reality, and bring benefit to local people by creating job opportunities, generating tax revenue and providing a greater variety of consumer products.
- More Chinese companies choose to go abroad as a group and establish their base for global expansion in overseas industrial parks.
CCG survey results show that an increasing number of Chinese companies have chosen to go abroad collectively, to complement each other and reduce potential risks. Meanwhile, the government also encouraged Chinese companies to go abroad as a group to coordinate their global expansion activities and effectively control risks.
CCG believes it will become a major approach for Chinese companies to invest abroad through overseas industrial parks, which can help them form an industrial chain abroad and access a wider range of technical and professional services.
- Chinese companies have stronger awareness of enhancing soft power through outbound investment and building world-class brands to climb up on global value chain.
Based on the survey of 200 Chinese companies in 2016, CCG found out brand promotion is one of the main reasons for them to go abroad, which mentioned by 43% of the companies polled.As of now, a number of Chinese brands have made themselves known to the world, such as State Grid, ICBC, Tencent, Haier, China Mobile, Huawei, and Lenovo, and effectively increased their international competitiveness. Moving on, they will intentionally build a stronger international image through outbound investment or M&A of established brands, to climb up on global value chain.
3.Challenges facing Chinese companies going globalfrom 2013 to 2017 and possible solution. In the Bluebook Report on Chinese Enterprises Globalization 2017, CCG identifies six major barriers in the globalization process of Chinese enterprises, and proposes possible solutions from different perspectives of the government, corporate, and other relevant institutions. The details are:
- At the initital statge of the “Belt & Road” Initiative, the risks for foreign direct investment has gradually emerged, such as high barriers for market entry and implicit obstacles for foreign investment.
The implementation of the “Belt & Road” Initiative has been obstructed by a range of implicit obstaclesfor foreign investment. Most of the projects under the “Belt & Road” Initiative require a large amount of capital, while the Chinese companies that are running those projects are not quite experienced in handling many tough issues in the outbound investment. Therefore, thoseobstacleshave posed threat to the Belt & Road Initiative already even when it is still at the initial stage.
Based on CCG’s analysis, the reasons it is difficult to enter the markets in the Belt and Road countries include: 1) many companies lack management experience; 2)they have difficulties in accessing finance and attracting talent; 3) third-party service agencies failed to connect Chinese companies with local partners; 4) in some countries, the market is still underdeveloped and political risks remain high.
To address these issues, the report advises Chinese companies to improve management,strenghthen strategic cooperation with other companies, and elevate their image in local society.The government is suggested to provide a comprehensive guilding plan to help Chinese companies improve their cabilities to tackle the challenges of investing globally and obtain better financial services. Additionally, the institutions such as AIIB and the Silk Road Fund should take a lead in the “Belt & Road” Initiative.
- Chinese companies’s outbound investment are facing stricter scrutiny both at home and abroad.
In the second half year of 2016, more investigations have been iniatited domestically about Chinese companies’ outbound investment, which slowed down their globalization process. Meanwhile, they have been subjected to more and stricterscrutiny in other countries, particularly those that are state-owned and operate business in the industries with some sensitivity.
CCG identifies the major problems that hamper Chinese companies from going global. Firstly, many Chinese companies do not fully realize the importance of fulfilling their legal andsocial responsibilitiessince the investment decision is rather impulsive; secondly, protectionism still remains in the countries but third-party service agencies cannot effectively help Chinese companies meet compliance requirement or smooth the relations with local stakeholders.
CCG suggests the Chinese companies should increase their understanding of local regulatory system and closely watch the change to legislation and policies. Chinese government, on the other hand, should further improve foreign investment legislation and foster mutual trust with local stakeholders. Also, legal consulting firms and industry associations should improve their services to make it align with international standard, and enhance their capacity of handling global issues.
- Cross-border e-commerce encountered challenges while going global.
The cross-border e-commerce is reshaping international trade landscape and driving innovation and entrepreneurship in China. Nowadays, several Chinese ecommerce giants as Taobao, Tmall,Jumei and Suning have already marched into global market and started encountering problems in logistics, customs clearance, risk control, and compliance with local regulation.
The reasons for those problems, as CCG analyzes, are: 1) the rules for traditionalcommerce are not applicable to e-commerce; 2)China’s current custom clearance system and post-sale services still need improvement.In view of these factors, CCG suggests that companies should enhance the supervision of their supplier system, improve customer clearance service, and ensure the sellers on their platforms comply with relevant laws and regulation. The government, on the other hand, should accelerate the process of building electronic payment system and credit system and settin the rules specifically for cross-border e-commerce. Additionally, the customs should also seek to faciliate e-commerce companies to expand their business globally.
- Manufacturing companies are experiencing difficulties in their transition to high-end intelligent manufacturing
China has been the world’s largest manufacuring nation since 2010, however, for the quantity not quality. Currently, manufacturing companies are undergoing thetransition towards high-end intelligent manufacturing, but the progress has been slow due to the low added value of their products, high production cost, and lack of investment and talent for R&D.
CCG proposes the companies to employ new technologies, investment approach, and development strategies to establish their brands in the world. Correspondingly, the government should guide them to build international partnership and improve education to cultivate more talent.
- The development of Chinese overseas industrial parksencountered a bottleneck.
China is still exploring the ways of building overseas industrial parks, which can be both beneficial and risky. However, the lack of experience in building industrial parks and mobilizingneeded resources have caused a number of problems, including high investment cost, insufficient equiment and facilities, and unsustainable production and management methods. In the exisiting industrial parks, private companies constitute the majority while very few state-owned enterprises have settled there. Also,many companies have no sufficeint knowledge about local market and regulation and limited access to financial resoruce.
CCG believes the reaons why the overseas industrial parks are not attactive enough to Chinese companies abroad are that it takes a long time to be built and that they have difficulties in obtaining finance and talent needed to establish their business in overseas markets.
The solution to those issues requires both companies and government to make effort. Chinese companies should design their developmental strategies abroad according to localcontext and improve their image by fulfilling social responsibilities and respecting local customs.The government can assign a task force specifically develop overseas industrial parks, improve services, set up demonstration zones, and help foster talent for the companies.
- Small to medium-sized companies are faced with difficulties in accessing finance for global expansion
The small to medium-sized companies have made remarkable progress in expanding global market and building their international image. However, they are still faced with difficulties in obtaining sufficient finance needed for their global expansion.
Four reasons are identified for this problem. Firstly, the financial market is currently not developed enough to meet their requirement for outbound investment financing services. Secondly, it is due to the absence of an established credit system.Thirdly, the lack of information impedes companies from obtaining loans and leads them to wrong investment decisions.
To cope with these challenges, companies are suggested to seek more sources of finance and improve their credit record. The government can help SMEs go global by pushing forward the globalization of Chinese financial institutions and their cooperation with international financical institutions. Chinese financial institutions should continue with their innovationand provide better financial services to support the globalization of SMEs.
4. CCG Rankings on Chinese Enterprises Globalization
Dedicated to the study and advocacy for Chinese enterprises globalization, CCG evaluates Chinese enterprises’ performance in globalization and presents ranking lists every year. This year, the result is based on CCG’s evaluation of 300 China-based MNCs using its self-established metrics and case studies. Through the ranking, CCG provides guidance and reference for Chinese companies to develop their global expansion strategies.
As usual, 50 companies were selected as the “2017 Top 50 Chinese Companies Going Global”, and another 50 companies were included in the list of the “Top 50 Emerging Chinese Companies Going Global”. In addition, 10 companies were named the top chinese companies for across-border M&A activities and for engagement in the “Belt & Road” Initiative. This year, CCG introduces several new categories for selection, in view of the growing trend in innovation and brand building, including “2017 Top Chinese Companiesfor Innovation”, “2017 Top Chinese Companiesfor Brand Strategy” and “2017 Top Chinese Companies for Outstanding Contributionto Globalization”.
- 2017 Top 50 Chinese Companies Going Global
Based on CCG’s evaluation of over 300 companies using its own metric system, 50 companies were selected as the “2017 Top Chinese CompaniesGoing Global”, for their global expansion peformance between January 2016 and August 2017, including strategt mapping, talent recruitment, market expansion, and CSR performance.
|1||China National Chemical Corporation||26||Wanxiang Group|
|2||Sinochem Group||27||Wolong ELectric Group Co.,Ltd|
|3||Legend Holdings||28||China North Industries Group Corporation|
|4||The Haier Group||29||China Nonferrous Metal Mining Co., Ltd.|
|5||HuaweiTechnologiesCo., Ltd||30||The China National Travel Service (HK) Group Corporation|
|6||ChinaState Construction Engineering Corporation||31||Alibaba Group|
|7||Midea Group||32||China Huaneng|
|8||Zhongxing Telecom Equipment||33||China Electronics Corporation|
|9||China National Offshore Oil Corporation||34||China Communications Construction Company Limited|
|10||Geely Holding Group||35||SANY Group|
|11||Weichai Holding Group Co.,Ltd||36||Aviation Industry Corporationz of China|
|12||HNA Group||37||State Development & Investment Corporation|
|13||CRRC Corporation Limited||38||Hisense Group|
|14||China cosco shipping group||39||CHINA CEFC Energy Company Limited|
|15||Bright Food (Group)Co., Ltd||40||ChinaNationalAviationHoldingCompany|
|16||Power Construction Corporation of China||41||Jinchuan Group CO., Ltd|
|17||China Minmetals Corporation||42||HBIS Group|
|18||China National Building Materials Group Corporation||43||China Tourism Group Co., Ltd.|
|19||COFCO Corporation||44||China Telecom|
|20||TCL Corporation||45||Zijin Mining Group Co., Ltd|
|21||State Grid Corporation of China||46||SAIC Motor Corporation Limited|
|22||Fusun International Limited||47||New Hope Group|
|23||Tencent||48||China state shipbuilding corporation|
|24||ChinaNational Petroleum Corporation||49||Yantong Co., Ltd|
|25||Sinopec Group||50||Chery Automobile Co., Ltd.|
- Top 50 Emerging Chinese Companies Going Global
CCG selected the “Top 50 Emerging Chinese Companies Going Global”, for their innovation, impact, and prospect. These companies have allsuccessfully completed innovative and groundbreaking investment projects abroad last year, and pushed forward Chinese enterprises globalization with their own strengthen.
(the companies are listed in an alphabetical order, not in accordance with their ranks)
|Anhui Shanying Paper Industry Co., Ltd||Qingdao Sentury Tire Co., Ltd.|
|Anhui Jianghuai Automobile Group Corp.,Ltd.||Doublestar Group|
|BYD Company Limited||Humanwell Group|
|Beijing Automotive Group||SanPower Group|
|Daily-Tech Beijing Co., Ltd.||Sunward Intelligent Equipment Group|
|Beijing Miteno Communication Technology Co. Ltd.||Xiwang Food Co.,Ltd.|
|Beijing Shanhaiqunlun Capital Management Co., Ltd.||Sun Paper Group|
|Chongqing Sokon Industry Group Stock Co., Ltd.||Shanghai Maling Aquarius Co.,Ltd.|
|Dongfang Hongtai Capital Investment Co., Ltd.||Shanghai Zhongji Investment Holding Co., Ltd.|
|Guangzhou Vanlead group Co,. Ltd||Shanghai Jahwa Corporation|
|HangzhouElectronic Soul Network Technology Co., Ltd||Shanghai Fudong Interactive InternetTechnology Co., Ltd.
|Hengkang Medical Group Corporation Limited||Suzhou Dongshan Precision Manufacturing Co., Ltd|
|AID Partners Technology Holdings Limited||Double Coin Holdings Ltd.|
|Hubei Sanonda Co., Ltd||Wangsu Co.|
|HC SemiTek Corporation||Wuhan Zhengtangzhiye Co., Ltd.|
|Solomon Systech||Esong Group Co., Ltd.|
|Yuwell-Jiangsu Yuyue medical equipment & supply Co., Ltd||Sunshine Holding Limited|
|Jisco Group Co., Ltd||Wintime Energy CO.,Ltd.|
|C-Bridge Capital||Zhejiang Xianju Pharmaceutical Co.,Ltd.|
|Lianhetech||Zhejiang Jinke Culture Holding Limited|
|China Molybdenum Co., Ltd||CCLAND Holdings (Sichuan) Limited|
|Mulinsen Co.,Ltd||China Oceanwide Holdings Group|
|Nanjing Estun Automation Company||China Tianying Inc.|
|Ningbo Jifeng Auto Parts Co.,Ltd.||China Zhongwang Holdings Limited|
|Ningbo Joyson Electronic Corp||China Three Gorges Corporation|
- Ranking in other categories
1) Top 10 Chinese Companies for Cross-border M&A Activities
The ranking is mainly based on the scale and impact of the Chinese companies’ cross-border M&A deals during the period of January, 2016 and August, 2017. Only those that have made public the details of the transaction were selected for the evaluation.
(Unit: US$ billion)
|Company||Value of M&A Transaction||Company||Value of M&A Transaction|
|1||China National Chemical Corporation (ChemChina)||43||6||Tencent||8.6|
|2||China Investment Corporation||13.8||7||HNA Group||6.5|
|3||China Vanke Co., Ltd.||11.6||8||Haier Group||5.58|
|4||Bohai Capital Holding Co., Ltd.||10.4||9||Giant Interactive Group Inc.||4.4|
|5||State Grid Corporation of China||9||10||Midea Group||4|
2)Top 10Chinese Companiesin the “Belt & Road” Initiative
The list was compiled based on CCG’s evaluation of Chinese companies’ role in the “Belt & Road” Initiative, including their participation in infrastructure development and other projects as well as international/regional impact.
(The companies are listed in an alphabetical order, not in accordance with their ranks)
|DidiChuxing||Shanghai Electronic Power Co., Ltd|
|Weichai Power Co., Ltd.||China General Nuclear Power Group|
|BOE Technology Group Co., Ltd.||China Communications Construction Company Limited|
|HBIS Group Co., Ltd||China National Building Materials Group Corporation|
|SGMW||China Non-ferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd.|
3) 2017 Top Chinese Companies for Outstanding Contributions to Globalization
Fuyao Glass Industry Group Co., Ltd.
Fuyao is a large China-based MNC specializing in auto glass manufacturing. By June 2017, Fuyao’soverseas revenue has increased by 17.78% and accounted for over 34% of its total revenues. In August 2017, Fuyaoestablished the “Fuyao International” to lead its oversea business development and mobilize resources to expand global market.
One of Fuyao’s achievement last year was the establishment of a factory in the United States, as the world’s largest auto glass manufacturing factory. Now, Fuyao is in the negotiation with Russia and Germany for future cooperation, as it is seeking a global network to grow its business.
Since Fuyao joined the global auto industry supply chain in 2011, its performance has been outstanding.As the Chinese company with the largest investment in the US manufacturing industry, Fuyao sets a good example for other Chinese companies on how to handle trade and business issues in an overseas market.
CRRC Corporation Ltd.
In 2016, CRRC’s total revenue reached RMB229.72 billion, including merged assets that value RMB338.3 billion and new contracts worth RMB262.6 billion. By August 2017, CRRC has signed the contracts with countries including America, Indonesia, Czech, Kenya, India, Thailand, Malaysia and Pakistan. Its products have entered into the markets all over the world. As CRRC’s global business is booming, the company has established the branches in North America and Latin America and built a new model of export that integrates capital, technology, service and management.
In April 2017, CRRCmade a deal with Los Angeles government that worth RMB4.45 billionon metro car purchasing. It also signed another contract with Chicago that values RMB8.5 billion, which has by far been the most important contract China has signed with developed countries. In addition, CRRC has been actively engaged in the “Belt & Road” Initiative, including providing 22 bullet trains to Malaysia withimproved technology and design.
4) 2017 Prize for Enterprise Branding Strategy
As the most well-known Chinese companyin manufacturinghome appliances and electronics，Haier Group has successfully established its name in global market, and become able to mobilize resources worldwide. In 2016, Haier recorded an annual profit of over RMB100 billion, or 32.59% higher than 2015. The sales of white goods already expanded to 10.3% of itsglobal sale. In the first quarter of 2017, Haier’s profit surpassed RMB37.7 billion. In March 2017, Haierreleased the development strategies for its six brands, which shows that Haier is not just a single tophome appliances brand in the world, but a cluster of top brands.
5) 2017 Top Chinese Companies for Innovation in Globalization
Alibaba went listed in the New York Stock Exchange in September, 2014, which attracted massive attention around the world.Nowadays, Alibaba’s core business comprises ecommerce, financial service, logistics, cloud computing. It is known for innovative global expansion strategy. For instance, Tmall, one of its subsidiaries,has made “selling and buying anywhere around the world” a reality.Its Ant Financial Services Group, a financial platform, is rapidly scaling up the business around the world, and so is its logistics subsidiaries -Cainiao Network. In terms of cloud computing, Aliyun has set up 13 big data centers in America, Europe, Middle East, Japan, and Australia. Beside Chinese consumers, Alibaba is also dedicated to extending its services in various sectors to global consumers.
Ofo isthe first platform that provides “dockless” cycles in China. Now, Ofo Inc. is also building its presence in overseas markets in the countries such as Singapore, America, Britain, Kazakhstan, Thailand, Malaysia and Japan, and providing over 8million bikes to around 25 million people in more than 170 cities. Ofo’s shared dockless cycle is named one of the four new Chinese inventions. As estimated, by the end of 2017, Ofo’sbusiness will be expanded to 20 countries.
For more information, please refer to the Report on Chinese Enterprises Globalization (2017) by CCG, published by the Social Science Academic Press.