Dr. Jean-Marc F. Blanchard's blog

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China’s Maritime Silk Roads Initiative and Southeast Asia: Rough Sailing through the South China Seas?

As our readership knows, one of China’s signature foreign policy initiatives is the Maritime Silk Road Initiative (MSRI), a key part of its larger One Belt, One Road (OBOR) scheme.

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Will Chinese Companies Conquer the World? Maybe, but maybe not…

For diverse reasons, Chinese companies have long been underestimated. Drawing upon his theory of the multinational enterprise based in transaction cost economics, Professor Jean-Francois Hennart argued, however, at the recent 10th annual China Goes Global meeting that such presumptions were ill-advised.

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Freedom is Slavery: Localization and CSR Strategy

Chinese companies like Bright Foods, Dalian Wanda, Fosun Group, Midea, and State Grid have been active buyers of European companies over the past few years. In 2014, they invested USD $18 billion while in 2015 they poured $23 billion into Europe.

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Promise the Sky and You Risk Being Blown Away: Unwise Chinese Firm Investment Promises

It has become de rigeur for Chinese companies investing overseas to make all kinds of promises to defuse host community anxieties, to smooth the deal approval process, and to win government investment incentives. For instance, in 2010, when Chinese bus maker BYD Motors, Inc.

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Hope and Hype about Chinese FDI in the US and Job Creation

Record Chinese outward foreign direct investment (OFDI) in the US has spurred great excitement about its job creation potential. There is good reason for optimism. For instance, Wanxiang’s 2013 purchase of A123 Systems and TDC Cutting Tools’s 2009 purchase of Greenfield Industries reportedly saved around 750 jobs.

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No Great Wall against Chinese Investment in the United States

For once, American and Chinese pundits seem to think alike: There is a budding Great Wall, reinforced by hostile political sentiments in the United States (US) and, above all, the sinister Committee on Foreign Investment in the United States (CFIUS), that is raising increasingly high obstacles to Chinese foreign direct investment (FDI).

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The Other “New Normal” or Chinese OFDI on the Rocks?

For some judging the current state of Chinese outward foreign direct investment (COFDI) negativity is the “new normal.” Rejected in Myanmar due to domestic politics, whipsawed in Sri Lanka by shifts in administrations, and hamstrung by the US Committee on Foreign Investment in the United States (CFIUS) national security review process, China In

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China’s Maritime Silk Road Initiative as the Next Great Investment Frontier (or Not)

In 2013, Chinese President Xi Jinping launched the 21st Century Maritime Silk Road Initiative (MSRI).

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A Yam Squeezed Between Two Boulders: The Dilemma of Transferring Technology to China…and Others

Tech firms dealing with China have long had to find ways to please the latter to ensure they have had permission to invest in or sell to China, to enjoy preferential polices afforded foreign investors, or to bid on government contracts.

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Loco about Localization: The Obvious is Not for Chinese Companies

It is de rigueur today that Chinese companies need to become more localized. At a minimum, they need to become more aware of local laws, regulations, and customs and abandon the idea they can do things like they do them at home. At the maximum, they need to hire more local workers and managers, source more goods locally, transfer technology, and become better corporate citizens, adopting meaningful corporate social responsibility programs.

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