The Rise of Chinese Transnational Corporations
The Rise of Chinese Transnational Corporations

Summary/Abstract: The article aims at investigating the process of increasing foreign expansion of Chinese enterprises leading to a rise of transnational corporations (TNCs). The study consists in empirical analysis of changing economic conditions in China under government-led three reforms including marketization, external liberalizaton and technological modernization, which were initated in 1978. The transition from plan market in China has resulted in the growth of market-oriented enterprises (public and private), which have become competitive on the domestic and foreign markets. Starting with exports, some national enterprises have moved to foreign direct investments to enhance their penetration of foreign markets. At present, various modes of foreign expansion underlay successof Chinese enterprises on the global markets. The analaysis of their foreign expansion - motives, conditions, forms - was carried out using OLI paradigm. The research finds a crucial influence on the government policies on foreign expansion of Chinese enterprises and their evolving international competitiveness, leading to the rise of TCNs - new "global players" in the world economy. Their competettive advantages evolve towards increased application of technology and innovations as wellas investments, despite the global slowdown. It can be concluded that the rise of Chinese TNCs and their path to success on global market have been achived with some specific features of foreign expansion distinguishing them from other groups of TNCs from developed and other developing countries.

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