Chinese MNCs as China’s New Long March: A Review and Critique of the Western Literature

Abstract

Chinese outward foreign direct investment (COFDI) has captured the imagination of international business academics, journalists, and analysts of Chinese foreign economic policy. While these students of COFDI have added greatly to our knowledge, they have not adequately considered the politico-economy of COFDI. Specifically, they have not sufficiently evaluated the degree to which COFDI is driven by political versus economic considerations, the extent to which political considerations influence the overseas operations of Chinese multinational corporations (MNCs), or the political ramifications of COFDI for host countries, international institutions, or China's interactions with third parties. Reviewing the Western literature, this article provides useful background information about COFDI, distills two general schools of thought about the politico-economy of COFDI-i.e., the "Beijing as Puppeteer" camp and the "Business of Business is Business" camp, and highlights a number of shortcomings with each. As well, it suggests a number of ways in which the extant literature can move forward and makes clear the importance of tracking the development of Chinese MNCs.

Reviewing the research on the internationalization of Chinese firms

“…In the academic sphere, the tremendous internationalization of Chinese firms (ICF) has been closely observed and energetically discussed (Blomkvist and Drogendijk, 2013). The central subjects of this debate are the antecedents and varieties of the ICF, as well as the implications for China's economic catch-up process and the global economy (Alon et al, 2012; the investigation period of existing review articles that include surveys on Chinese greenfield investments and Chinese CBMAs does not extend beyond 2012 (Berning and Holtbruegge, 2012;Blanchard, 2011;Deng, 2013). In addition, more current review articles exclusively focus on Chinese CBMAs (Liu and Deng, 2014;Zhu and Zhu, 2016).…”

Contemplating Chinese Foreign Policy: Approaches to the Use of Historical Analysis

“…Barry Naughton, “China's Distinctive System: Can it be a Model for Others?” Journal of Contemporary China , 19‐65 (June 2010), pp. 437–460; Jean‐Marc F. Blanchard, “Chinese MNCs as China's New Long March: A Review and Critique of the Western Literature,” Journal of Chinese Political Science , 16‐1 (March 2011), pp. 91–108; and Shaun Breslin, “China and the Crisis: Global Power, Domestic Caution, and Local Initiative,” Contemporary Politics , 17‐2 (2011), pp.…”