Chinese Multinational Companies in North Rhine-Westphalia/Germany

Research Background: Chinese outward foreign direct investment (OFDI) has become a part of China’s strategy of joining global competition. Since 2000, with deregulation and liberalization under the context of “Go Out” policy, the Chinese government has encouraged all kinds of domestic companies to expand into foreign markets by creating a variety of incentives for OFDI. Chinese multinational companies (MNCs), as latecomers, attempt to accelerate international expansion into developed countries, for the purpose of catching up with the global incumbents. Research focus: the characteristics, spatial pattern and determinants of Chinese OFDI by Chinese MNCs in the state of North Rhine-Westphalia (NRW), Germany, including internal and external motivations in macro-and micro-levels: global-, national-, sub-national-, industry-and firm-level and factors from both home and host markets. Research methods: qualitative, quantitative methods and multiple-case study approach are employed in the research by using both primary and secondary data sources. Main findings: the location process of Chinese OFDI is dynamic and are determined by multi factors which can be explained by multiple theoretical perspectives that standing by the integration of strategy tripod framework, network perspective, modified OLI model and springboard perspective. The Chinese MNCs are driven by the integration of spatial, economic and political factors. For example, the state’s location advantages, institutional factors and networks in both domestic and host markets, Chinese MNCs’ strategic intents, the business and export experiences, learning and absorbing capabilities drive Chinese companies investing to NRW. The investment in the state is a springboard of MNCs' global layout.