China's new global companies

China is now the world's fourth largest exporter, but most Chinese companies remain small by global standards and outward direct investment is tiny compared with other big economies.

by IBM Institute for Business Value
Last Updated: 23 Jul 2013

However, a growing group of Chinese companies have the potential to become truly global players in their industries over the next decade, including Huawei (telecoms), PetroChina (energy), Haier (white goods) and SAIC (automobiles).

The search for new growth markets, acquisition of advanced technology and management skills, and intense domestic competition are cited as prime motivations. Companies are developing technologies to improve their global competitiveness, but global partnerships and overseas acquisitions may also be viable alternatives.

A lack of qualified managers and a dearth of global brands are seen as the key challenges to overseas expansion.

Going global: prospects and challenges for Chinese companies on the
world stage
Alan Beebe, Chee Hew, Feng Yueqi and Shi Dailun
IBM Institute for Business Value, 5 April 2006

Review by Steve Lodge.

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