HEC-Tsinghua research project on "Chinese Multinationals"...

HEC Paris and Tsinghua SEM in China have joined forces to conduct an in-depth investigation about the internationalization of Chinese companies over the last twenty years. The HEC-Tsinghua research project on “Chinese Multinationals” was carried out by twelve experts from both schools. Data were collected in China and in Europe from twenty leading Chinese companies operating in a variety of economic sectors.

Professor Qian Yingyi, Dean Tsinghua School of Economics and Professor Jean-Paul Larçon, Senior Associate Dean HEC Paris presented the results of this research at the Shanghai Management Development Week. The book “Chinese Multinationals” just published by World Scientific Publishing, examines in detail the extraordinary saga of Chinese well known national and international champions such as: Baosteel, Bird, Haier, Hisense, Huawei Technologies, Lenovo, Nuchtech (Tsinghua Tongfan), Petrochina, TCL Multimedia, Tsingtao Brewery, Wahaha, and Wanxiang.

The book, which includes a foreword by Liu Chuanzhi, Chairman of Lenovo, provides a comprehensive overview of their international marketing strategy, branding policy, acquisitions abroad, technology-based strategies, international organization, and international human resource management.

In 2008, twenty-nine leading Chinese enterprises were already on the Fortune 500 Global list.
Eight mainland China companies were among the top 100 non-financial multinationals from developing countries: CITIC, COSCO, Sinochem, Lenovo, CNOOC, China Minmetals and China Communications Construction. CITIC, the largest Chinese Multinational has an index of transnationality (ratio of foreign assets, sales, and employment to total activity) as high as 92%. 72% of Huawei Technologies’ sales in 2007 are in the international market.
Haier has demonstrated its capacity to develop - in a very short period of time - a business model with strong local responsiveness and the ability to serve the different needs of its customers in China, in emerging markets, and in large segments of developed economies, such as the EU and the U.S.

In 2008 Chinese multinationals meet new challenges such as managing joint ventures abroad with partners who have potentially diverging long-term goals, or integrating companies with a very different organization or culture.
However, in the context of financial turmoil and economic slow down in Europe and in the US, they are in a good position to continue their expansion abroad and to seize the opportunity to make large acquisition in key industries.

“Chinese Multinationals”, J-P Larçon (Ed.), World Scientific Publishing Company, Singapore (2008)

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Liu Chuanzhi
President and CEO of Legend Holdings Ltd, Beijing, China

“Thanks to China’s access to the World Trade Organization (WTO) in 2001, the internationalization process of Chinese enterprises though still in its initial stage, has developed with great dynamism and diversity. This is yet another “long march” for the growth of Chinese entrepreneurs and China’s economic development. There are both successful experiences as well as bitter lessons. Chinese Multinationals, a book jointly written by professors of HEC Paris, professors of the Tsinghua SEM, and other Chinese scholars, offers a snapshot of this process.

Henri de Castries
Chairman & CEO, Management Board AXA, Paris, France

“At a time where globalization is both a great opportunity and a challenge to many societies, companies and individuals, this book is a very useful contribution. This book helps us to understand how Chinese companies are using their domestic successes to accelerate their development and enhance their access to new markets or new technologies.

Most of the cases studied illustrate well thought through strategies even if some of them are not without challenges.”

Eric Cornuel
Professor of Strategy, Director General European Foundation for Management Development, Brussels, Belgium

“This is an exceptional book with real strategic insight into the rise of several leading Chinese multinationals. It is a must read for academics and practitioners who are looking to understand the subtleties of the Chinese market and the evolving role Chinese companies have on the international arena.”

Saul Estrin
Professor of Economics, Head of Management Department, London School of Economics, UK.

“Strategy and International Business professors have long analysed multinational corporations based in developed economies. But in the past decade, we have seen the emergence of business giants from emerging markets, notably China. Jean-Paul Larçon from HEC, Paris, in collaboration with colleagues from the Tsinghua School of Management, has now edited a book of cases that provide a rich insight into the problems as well as the successes of internationalisation by chinese multinationals.
This book will be an invaluable source for academics and practitioners trying to understand the emergence of these new global players.”

LI Daokui
Professor of Economics and Director of the Centre for China in the World Economics (CCWE), Tsinghua University, Beijing, China.

“The miraculous emergence of the Chinese economy for the past three decades has reshaped the landscape of the world economy, just like those of the emergence of the US, German, and Japanese economies in history. The building bricks of the miracles are a large number of indigenous Chinese enterprises, some of whom have gained international eminence similar to the Fords, GMs, Mercedes Benz’s, and Sony’s in the past. With extraordinarily high national savings rate, China very likely will be the home of many of tomorrow’s largest multinationals.
A team of researchers from HEC Paris and Tsinghua School of Economics and Management, leading business schools in Europe and China, have joined forces in a project attempting to understand the emerging Chinese multinationals from Chinese and international perspectives. The outcome is this insightful and fascinating book. It surely will be on the top of any reading list of the Chinese economy and Chinese multinationals.”
“过去三十年间中国经济奇迹般的崛起，与历史上美国、德国和日本经济的崛起一样，创造了世界经济的新格局。创造之一奇迹的是一大批中国本土企业。它们中的一些企业已经名闻国际，与福特，通用，奔驰，索尼过去一样。中国国民储蓄率超高，中国非常有可能成为未来大跨国公司的安家之处。欧洲和中国的知名商学院——巴黎HEC学院以及清华经管学院的研究人员开展了一项合作项目，致力于从中国和国际视角来解析崛起中的中国跨国企业，成果就是这本见解精辟的新书。这本书必将成为讲述中国经济和中国跨国企业的最经典的书籍之一。”
经济学专家，中国北京清华大学中国与世界经济研究中心主任李稻葵

Carlos Losada Marrodán
Professor of Strategy , Director General ESADE, Spain.

“A must read for business leaders and scholars interested in understanding the rise of Chinese multinationals.
The book provides unique insights on the ambitions and commitment of many Chinese companies to "go global", their strategies and internationalization processes.
“对中国跨国企业感兴趣的商界领袖和学者来说，这本书是必读本。
这本书见解独到的介绍了众多中国公司的雄心以及 “走向世界”的志向，它们的战略及国际化进程。”
战略专家，西班牙ESADE总干事卡洛斯•罗沙达•马洛丹

Subramanyam Raghunath
Professor of Corporate Strategy and Policy, Indian Institute of Management Bangalore, India.

“It is of great interest and value to managers as well as researchers interested in understanding the evolution of Chinese multinationals. It offers an insight into the present wave of Chinese globalization. Edited by the well-respected Professor of Strategy, Jean-Paul Larçon, who is an expert on Multinationals of Emerging Markets, the book combines a strategic and managerial approach to global issues affecting Chinese multinationals.
The book provides a comprehensive overview of the international strategies of leading Chinese corporations over a ten year period (1986-2006). This book genuinely stands out as an excellent offering; the content is very informative and written in a concise manner. It is an exciting book covering different facets of the internationalization process of emerging multinationals from China. “
“对致力于知晓中国跨国企业的崛起历程的管理层以及研究人员来说，这本书非常有吸引力和价值。这本书有助于读者洞悉中国当今的国际化进程。尊敬的战略专家拉尔松教授是新兴市场跨国公司研究专家，编著了这本书。这本书综合采用战略视角和管理视角来探讨影响中国跨国企业的全球性问题。
这本书简要介绍了过去数十年间(1986-2006)中国主要企业的国际化战略。这本书深深地吸引了我，有大量信息又简明扼要，使人获益良多。涵盖了中国崛起中的跨国企业的国际化进程的不同层面。”
印度班加罗尔印度管理学院公司战略及政策专家沙布拉曼亚姆•拉横那

Kulwant Singh
Professor of Business Policy, National University of Singapore Business School, Singapore.

"The emergence and impact of Chinese multinational enterprises will mirror the rise of China - these firms will have important impact on international business and trade, will pose complex challenges for partners and managers, and will present many puzzles and opportunities for practitioners and academics. Larçon's book provides excellent insights that will help managers and researchers understand the emergence, operations and strategies of Chinese multinationals. Highly recommended"!
“中国跨国企业的崛起和影响力折射了中国的崛起。这些企业将对国际商业及贸易产生重要影响，给它们的合作伙伴以及管理层带来局面复杂的挑战，给从业者以及专业学者诸多难题和机遇。拉尔松教授的新书见解深刻，有助于管理层以及研究人员领会中国跨国企业的崛起，运营，以及战略。强烈推荐！”
新加坡国立大学商学院商业政策副教授