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

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

Authors

S. Yao.

J. Chen



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
Electronic ISSN 2164-2257
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/