Article

The Strategy Choices of China’s Central-Controlled State-Owned Enterprises’ Outbound Foreign Direct Investment

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FENG Ti-yi

Online published: 2015-03-20

Abstract

The expanding rate of Chinese outward foreign direct investment (OFDI) is unprecedented, and the majority is undertaken by Central-Controlled state-owned enterprises (CSOEs). However, to the best of our knowledge, there has little analysis of CSOEs’ OFDI in literature for the reason of unavailable data. To fill the research gap, this paper focuses on describing the nature characteristics of CSOEs’ OFDI by using hand-collected data especially concerning industry distribution, location distribution and entry modes. The results show that CSOEs prefer to invest in nature resource-rich countries and industries, Asia and Africa attract most CSOEs’ OFDI, and investments in rest of continents are increasing steadily. The location distribution is more rational over time. Industry distribution concentrated on the second industry, such as mining, construction and manufacture. In addition, setting up new plants or wholly-owned new companies is the main entry mode. In effect, the 2008 finance crisis has promoted CSOEs’ OFDI, especially in mergers and acquisitions.

Cite this article

FENG Ti-yi . The Strategy Choices of China’s Central-Controlled State-Owned Enterprises’ Outbound Foreign Direct Investment[J]. Journal of East China Normal University (Philosophy and Social Sciences), 2015 , 47(2) : 113 -123 . DOI: 10.16382/ j.cnki.10005579.2015.02.013

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