Chinese Business Groups: The Strategies to Improve International Competitiveness

To better cope with the challenges brought by globalization, a few Chinese enterprises have made breakthroughs in enhancing the international competitiveness of their main businesses. As an exception under the same environment, especially the same institutional settings, their experience to deal with globalization and improve international competitiveness are worth studying. For example, some private and state-owned enterprises with considerable competitive advantages in their main businesses have improved their management structure and financing capacity by listing at home or overseas. Meanwhile, listing helps them increase the R&D investment as well as manufacturing investment, integrate the industry chains and improve the market share at home and abroad. While other enterprise with absolute market power take advantage of China’s accession to the WTO. Through acquisitions and mergers of domestic and foreign enterprise, they have improved their international market share as well as strengthened their advantages in R&D, manufacturing, and marketing, respectively.