NRI Papers
No.68   September 1, 2003
  The Globalization of Chinese Companies and Advances into Japan  
Hiroshi MATSUNO and Elly LIN
      China has been absorbing an enormous amount of foreign capital and accumulating large foreign exchange reserves. At the same time, however, it is fast starting to play a major role as a capital exporting nation. Chinese companies are showing signs of developing full-scale overseas investment along with the acquisition of foreign exchange and moves towards business expansion, both of which have been triggered by the recent economic growth.
      Surveys conducted among companies in Shanghai and its outskirts have revealed the strong desire of Chinese companies to pursue investment opportunities in Japan. While the major reason appears to be the market scale, attention is also being given to Japan's substantial wealth of information related to leading technologies and the nation's highly skilled human resources. As the companies that responded to the surveys also rightly recognize the importance of experience as a global enterprise, corporate management techniques, and the establishment of core businesses, they singled out "Finding an appropriate business partner" as the most important prerequisite in making decisions to invest in Japan.
      Under such a business environment, Japanese companies are required to actively participate in the corporate management of Chinese companies, and provide such techniques as an international division of labor and value chain management that Japan has accumulated based on its experience in other Asian nations. Moreover, Japan should promote investment in Japan by becoming a partner of Chinese companies intending to advance into the Japanese market.
I Current Status of Overseas Investment by Chinese Companies
  1 Transfiguration into a Huge Capital Exporting Nation
  2 History of Overseas Investment in China
  3 Current Status of Overseas Investment in China
II Status of Overseas Investment among Companies Based in Greater Shanghai
  1 Overseas Investment by Chinese Companies Based in Shanghai and its Environs
  2 Chinese Company Views on Overseas Investment
III Advances into Japan by Chinese Companies and Responses by Japanese Companies
  1 East Asian Economy Pulling World Economy
  2 China's Investment in Japan Strengthens Japan's Competitiveness


Copyright(c) Nomura Research Institute, Ltd. All rights reserved.