Adapting to the China Challenge

The fact that China is an increasingly attractive market and a magnet for foreigndirect investment is not news. The unprecedented rise of foreign direct investmentinto China – now running at over $60 billion a year – has created the largest array ofinternational mergers and acquisitions, alliances, joint ventures and partnerships everwitnessed. These are clearly a major source of complementary assets, resourcesand capabilities for the Western multinationals and the local companies involved,who engage in a reciprocal give-and-take as part of the process of market entry.The research reported here examined British, European and US firms operating inChina. There are numerous success stories and examples of how these multinationalfirms have overcome the challenges to establish profitable businesses producing andselling in the world’s fastest-growing market. Many of these firms are also learningfrom this experience in ways that benefit their business operations elsewhere.[...]