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Report on Globalization of Chinese Enterprises 2018

Friday,Dec 07, 2018

蓝皮书 400 图片_20181119101403

 

Abstract

CCG's Report on the Globalization of Chinese Enterprises (2018) is the latest fruit of CCG's continuous research into the internationalization of Chinese firms, which has been running for the last five years. The report contains theoretical and empirical research, providing analysis of various aspects of the overseas development of Chinese enterprises. The report consists of seven sections, namely General Report, Evaluation Reports, Investigation Reports, Special Topic Reports, Strategies and Recommendations, Chinese Enterprises Case Studies, and Appendixes.

The first section, General Report, systematically reviews the current situation of FDI globally as well as from China. Breakdown of investment flows shows that the US and Europe are still the favored destinations for investors and that FDI is still concentrated in the service sector. Regarding the mode of investment, both cross-border M&A and greenfield investment have declined. Despite the spread of protectionism, overall, the trend for FDI policies is to be more oriented towards openness and facilitation.

Looking at the outbound investment of Chinese enterprises specifically, the preferred destination has shifted from North America to Europe and Asia; investment entities are increasingly diversified; the mode of investment for growing cross-border M&A activity and falling greenfield investment. Sector-wise, FDI is mainly concentrated in manufacturing, particularly high-end sectors.

The first section also analyzes five major challenges faced by Chinese enterprises in overseas development from 2017 to 2018. The chapter highlights how the overseas development and compliance management of Chinese enterprises need to be in line with international standards. The study also emphasizes that Chinese enterprises have a long way to go in the evolution from “product internationalization” to “brand internationalization.”

Difficulties of Chinese enterprises in aligning with the Belt and Road Initiative is discussed, as well as obstacles facing FDI into the US due to the intensifying Sino-US rivalry. In addition, the section also highlights the need to improve the efficiency of public-private partnerships (PPP) for Chinese enterprises to undertake overseas projects. Based on in-depth analysis, corresponding countermeasures and solutions are proposed to provide a reference for the overseas development of Chinese enterprises.

In the Evaluation Reports section, CCG presents the list of “Top 50 Chinese companies going global” which is based on the continuously updated Chinese Enterprise Globalization Evaluation System (2018) and on data that CCG has collected on over 300 Chinese companies that invest overseas. The reports also include the “Top 50 newly-developing Chinese enterprises”, the “Top 10 Chinese enterprises in ‘Belt and Road’ Initiative, and the “Top 10 innovative Chinese enterprises”.

The Investigation Reports section presents survey feedback and expert opinions drawn from forum discussions. CCG cooperated with Ifeng.com to conduct online surveys of over 200 enterprises, providing an overview of Chinese enterprises "going out," problems that they face, the impact of policy changes, and prospects of the enterprises participating in the Belt and Road Initiative. To gather expert opinions, CCG compiled views shared at the 4th China Outbound Forum by experts, scholars, and entrepreneurs. This section provides an overview of the current trends and issues facing Chinese enterprises "going out," serving as a valuable reference for Chinese enterprises that have already invested or plan to invest overseas.

Special Topic Reports are based on in-depth discussions on the compliance issues faced by Chinese enterprises in their overseas development; research on the outbound investment of private enterprises; and research on Belt and Road Initiative economic and trade cooperation. Moreover, this chapter provides specific analysis of the characteristics of Chinese enterprises' overseas development.

The Strategies and Recommendations section covers several themes, including the current trends, opportunities and challenges for SMEs regarding overseas development;how professional lawyers interpret the core clauses of Chinese enterprises’ cross-border M&A contracts;analysis of the impact of recent US and EU regulations on Chinese enterprises。

The Chinese Enterprise Case Studies section highlights eight stories of Chinese companies that have attained notable success in globalization, namely Fuyao Group, Fosun Group, Career International, Baidu, JD, Country Garden, Daddy's Choice, and Henan Civil Aviation Development & Investment Co. Analysis of these cases provides a reference to Chinese enterprises moving forward in the progress of globalization.

Finally, the Appendices list a collection of key events regarding Chinese outbound investment activities from 2017 to 2018.

It is hoped that this book will help readers understand the processes of Chinese enterprises' globalization, providing theory and analysis to supports the continuous overseas development of Chinese firms, and helping relevant government agencies in policymaking.

 

CONTENTS

 

ⅠGeneral Report

B.1 Current Status and Future Trends of Chinese Enterprises Globalization

Wang Huiyao, MiaoLv

  1. Overview
  2. Current Situation and Features of Global FDI 2017-2018
  3. Current Situation and Features of Chinese Companies’ outbound investment 2017-2018
  4. Challenges for Chinese Enterprises Going Global and Proposed Solution
  5. Conclusion

Evaluation Reports

B.2 Ranking Lists of Chinese Enterprises Globalization 2018

CCG Research Group on Enterprises Globalization

B.3 Chinese Enterprises Globalization Evaluation System 2018

CCG Research Group on Enterprises Globalization

 

Investigation Reports

B.4 Report on Chinese Companies’ Outbound Investment 2018

CCG Research Group on Enterprises Globalization

 

B.5 Report on New opportunities, New challenges and New responsibilities of Chinese Enterprises Going Global

CCG Research Group on Enterprises Globalization

IV Special Issue Reports

B.6 Accelerate market-oriented enterprise investment for the sustainable development of the Belt and Road Initiative

He Weiwen

B.7 Economic cooperation on the Belt and Road: Current trends and development prospects

Huo Jianguo

B.8 Lessons from a historical perspective on “going out”: The relevance of Japanese corporations’ internationalization for Chinese manufacturing “going out”

Tang Qiwa

B.9 Strengthening corporate compliance management for stable international development: Experience and lessons from Chinese and foreign enterprises

Ding Jihua

B.10  National security review of foreign investments in the US, EU, and other countries: Trends, characteristics, and responses

Lu Jinyong, Li Xiaoyong, Wei Hongbin

B.11 Guarding against the “technology Cold War” mentality: Impact on China’s innovation strategy

Zhao Gang

 

V Strategy Recommendations

B.12 SMEs going out: Challenges and solutions

Wu Yun

B.13 Legal analysis of core clauses in the cross-border M&A contracts of listed Chinese companies

Zhang Shiwei

B.14 Recent Regulatory Developments in China, the US, and EU regarding Chinese Outbound Investment: Impact and Responses

Wu Guohua,Lei Yujing

 

VI Enterprise Case Studies

B.15 AI becomes the key engine for Chinese internet companies to go global

Zhang Yaqin

B.16 Understanding Fosun’s global development

Miao Lv

B.17 Insights from Fuyao Group’s internationalization strategy

Dong Qingqian, Niu Xiao

B.18 The role of “industry new towns” in Malaysia’s economic development

Yu Weiwei

B.19 Using the “Aviation Silk Road” to drive the global integration of interior regions

Zhang Mingchao

B.20 Daddy’s Choice: The “Chinese manufacturing, global development” brand development strategy

Wang Shengdi

B.21 JD’s internationalization strategy and lessons for Chinese enterprises

JD.com

B.22 Career International: Global development and cross-border services

Wang Tianpeng

Appendixes

B.23 Major Events of China Outbound Investment (July,2017-July,2018)

B.24 Postscript

  • New policy announced to attract foreign talent

    The new policy, which will take effect in March, also offers favorable terms to foreigners who wish to seek permanent residence in China, according to the ministry.

  • 【Global Times】New immigration agency reflects openness to foreign talent

    The establishment of an immigration agency could better coordinate China’s management on immigration work and better guarantee the legitimate rights and interests of foreign talent, observers noted.

  • Sino-US Economic Relations & Free Trade

    The annual 3 days China Development Forum concluded in Beijing, in the Forum the economic relations between China and US were once again a major topic. The bilateral trade relation is great importance not only for the biggest economies in the world, but also playing a large part in shaping the future of global free trade and world economy.

  • Global vision | China Daily

    China’s Belt and Road Forum for International Cooperation, which was attended by 29 foreign heads of state and government including Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan, concluded in Beijing on May 15.

  • China and US should move forward regardless of election result

    David Lampton, director of the China Studies at Johns Hopkins University in the US, offered solutions and elaborated on why there is plenty of hope for better bilateral relations, at a Beijing-based seminar hosted by the Center for China and Globalization on Thursday.