Chinese SOES vs Chinese Private Companies in International Market

Zakić, Katarina and Radišić, Bojan (2018) Chinese SOES vs Chinese Private Companies in International Market. In: 30th International Scientific Conference on Economic and Social Development. Varazdin Development and Entrepreneurship Agency; Faculty of Management University of Warsaw; University North; Faculty of Law, Economics and Social Sciences Sale - Mohammed V University, Varaždin, Warsaw, Koprivnica, Rabat, pp. 158-167. ISBN ISSN 1849-7535

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Abstract

The opening of China to the world began in 1979 under the leadership of the Chinese leader Deng Xiaoping and, in a way, that was the beginning of the international development for Chinese companies, slowly but surely it became a significant competitor in international market. The process of internationalization started in the 1990s through various infrastructure projects that were conducted by Chinese state-owned enterprises in Africa and Asia. After their expansion abroad, Chinese private companies started to work overseas at the beginning of a new millennium. Their first investments were in IT industry in the United States of America and they purchased some of the world's most recognizable brands. Nowadays, Chinese companies are among the leading investors globally. On prestigious business lists, such as Forbes and Fortune 500, they occupy high positions in all categories. Slowly but steadily, they are leaving behind big global players from the US and the EU. Primarily, the progress has been achieved because the Chinese companies enjoy great support from the Chinese Government, which provides support to them both on financial and diplomatic level. The aim of this paper is to show how Chinese private and state-owned enterprises behave in the international market and point out the similarities and differences of their strategic approach (both through individual cases and through a comparative analysis of two case studies). The authors will elaborate on the dominant areas and investment branches for both types of companies, and also what problems those companies encounter in international business market.

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