Chinese FDI in New Zealand: What Are Chinese Investors Looking For?

Abstract

In recent years, there has been unparalleled growth in outward foreign direct investment from China.Traditional Western-dominated international business theory proposes that asset exploitation is necessary for fi rms undertaking foreign investment. However, more recently, studies suggest asset augmentation is more important for multinational enterprises from emerging countries. This article examines the acquisition by two Chinese fi rms-Agria and Haier-of two iconic New Zealand fi rms, each with a signifi cant international presence-PGG Wrightson and Fisher & Paykel. The article determines that Agria and Haier invested to acquire strategic assets in order to strengthen their position in the Chinese market as well as build and sustain a global position. Strategic intent was an important factor in deciding where to invest, and strategic assets complementary to their own competitive advantages were sought by the Chinese fi rms.

Foreign Direct Investment Determinants in Oil Exporting Countries: Revisiting the Role of Natural Resources

“…Faheem, Dost, Dost et al, (2011), who consider the cheap labour to be an important determinant of FDI inflow in China, support this argument. More recently, Ge et al (2017) clarify that market openness, the availability of productive and skilled labour, a transparent environment and the investment climate are the major factors behind the attractiveness of the USA as an FDI host country. Aziz and Mishra (2016) confirm that an educated labour force and financial development could attract more FDI inflows to the Arab countries.…”

“…Aziz and Mishra (2016), who investigated the determinants of FDI inflows in 16 Arab countries (including the GCC countries) from the period 1984 to 2012, confirm these results. More recently, Ge, Stringer and Ding (2017) clarified that market openness is one the major drivers of the FDI in the USA. In the same context, Hassan (2017) suggests that purchasing power, human capital and trade openness are the key determinants of inward FDI in the Middle East region.…”

What drives the inflow of FDI in OIC countries? Evidence from Top 10 hosts of inward FDI flows

“…Moreover, Akadiri et al, (2019) and Ibhagui (2020) stated that FDI inflows also encourage the development of the institution and contribute to the human capital improvement of the host countries. However, Ge et al (2017), Onafowora and Owoye (2019) and Aziz (2018) confirm that the highest productivity of human resources in the host country will create a conducive investing environment. Therefore, Eissa and Elgammal (2019) suggest that policymakers should offer training as well as proper education to increase the quality of human capital.…”

The challenge of Chinese state‐affiliated multinationals in benefiting from foreign subsidiary knowledge transfer: A criticism of light‐touch integration

“…How can Chinese state‐affiliated MNEs engage in higher value‐added activities and foster innovation development? This question is of particular importance as, in essence, Chinese MNEs, particularly state‐affiliated ones, have engaged actively in strategic asset‐seeking investments overseas to acquire advanced knowledge, to compensate for their “latecomer disadvantage” and to “catch up” with the global giants by benefiting from the well‐developed host institutions (Deng, ; Deng, Yang, Wang, & Doyle, ; Ge, Stringer, & Ding, ; Lyles, Li, & Yan, ; Mathews, ; Sutherland, ).…”