The internationalisation of Chinese enterprises: the analysis of the UK case

The rapid increase of China's outward direct investment has drawn considerable attention, especially Chinese enterprises engaging in M&A activities in developed markets. This has presented a big challenge to conventional theory of internationalisation, which tends to assume that firms internationalise to exploit competitive advantages and prefer to invest in near 'psychic distance' markets. This paper examines the patterns of and the motives for Chinese enterprises investing in the UK. The survey indicates that in their infancy as foreign investors, Chinese firms are investing in the targeted country in order to promote export and acquire competitive advantages and they are setting up wholly owned subsidiaries as the main entry mode in the UK.