Chinese state-owned enterprises (SOEs) are increasingly active in overseas mergers and acquisitions in the mining sector, driven by the need to secure access to critical minerals. Australia’s rich mineral resources and stable investment environment make it a key destination. This paper examines the inside mechanisms of Chinese SOEs when they undertake Outward Foreign Direct Investment (OFDI) to understand how they perceive and navigate geopolitical change and regulations in the critical minerals sector. Drawing on interviews and documentary analysis of China Minmetals Corporation (Minmetals) and its establishment of the Australian subsidiary MMG, the research analyses the heterogeneous ways in which MMG and Minmetals perceive and respond to regulations and changing geopolitical realities. It contributes to studies of SOEs by providing insights into how decision-makers in SOEs perceive and react to Australian regulations, how they translate mandates from Chinese administrative institutions to their Australian subsidiaries, and how they handle conflicting interests between the headquarters and subsidiaries, as well as across borders. It also contributes to a broader understanding of opportunities and challenges SOEs face in Australia. While state ownership brings MMG advantages of market access and policy support, it also generates constraints, including frequent leadership rotations, short-term performance incentives, and challenges to integration with overseas firms. This study shows continuous coordination and negotiation across levels between MMG and Minmetals, and with regulatory bodies in Australia, such as the FIRB, and in China, exemplified by the State-owned Assets Supervision and Administration Commission (SASAC).
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