China's Outward FDI and Resource-Seeking Strategy: A Case Study on Chinalco and Rio Tinto

Yao., S.; Sutherland, D.; Chen, J.

Abstract

The scale and frequency of foreign direct investment (FDI) in foreign mining companies by China's large state-owned enterprises (SOEs) is still not well explained by existing investment or international business theories. This paper advances and verifies two important theoretical propositions. First, the efforts of China's big businesses to "go global" can be thought of as being part of a national power-building globalisation strategy. Second, facilitated by extended protection from the state, reaching beyond China's national boundaries, China's large SOEs raise investment capital and take risks that their foreign competitors do not. This paper uses Chinalco as a case study to illustrate these propositions.

Citation

Yao., S., Sutherland, D., & Chen, J. (2010). China's Outward FDI and Resource-Seeking Strategy: A Case Study on Chinalco and Rio Tinto. Asia-Pacific Journal of Accounting & Economics, 17(3), 313-325

• Journal Article Type: Article
• Publication Date: Dec 1, 2010
• Deposit Date: Oct 21, 2011
• Journal: Journal of Accounting and Economics
• Print ISSN: 1608-1625
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 17
• Issue: 3
• Pages: 313-325
• Keywords: OFDI, Chinese big business groups, Global financial crisis, Globalisation, Resource-seeking.
• Public URL: https://durham-repository.worktribe.com/output/1503352
• Publisher URL: http://www.cb.cityu.edu.hk/research/apjae/