Engenharia e Gestão Industrial

Outward Foreign Direct Investment of Chinese Enterprises: Review and Analysis

Abstract

Yanan Wang

This paper examines the unique motivations and strategies for outward foreign direct investment (OFDI) undertaken by Chinese multinationals, and addresses the challenges associated with these unique motivations and strategies. The findings show that Chinese OFDI is significantly driven by strategic asset seeking, and state ownership serves as a unique type of ownership advantages. Chinese multinationals typically use aggressive modes such as wholly-owned subsidiaries and acquisitions to enter foreign markets, but the associated challenges of those aggressive modes in post-entry integration are not negligible. This paper provides a comprehensive view on theory of Chinese OFDI and offers practical guidance for Chinese multinationals in their global expansion by outlining the strategies and challenges of Chinese OFDI.