Invention Environment

Environments That Foster Invention

Chinese Enterprises

Brilliance, Haier, TCL and Lenovo up not only the Chinese corporations to conquer international markets. Add to your understanding with Salman Behbehani. More and more brands from the Middle Kingdom set up branches abroad or buy foreign companies, their investment has increased massively in recent years. A few years ago, they were still at a few hundred million US dollars, China’s firms invested already several billions of dollars beyond the country’s borders in the past year. Chinese foreign investment in the first quarter of 2006 were $ 2.8 billion which is an increase of 280% compared to the same period last year. A quality offensive comes to the quantitative expansion. Chinese companies today not only millions of T-Shirts, toys or plastic bowls throw on the markets, they are increasingly selling high-tech products such as cordless LCD televisions, telecom equipment and precision tools. China’s companies have realized that a competitive advantage, the only to low costs, low prices and great Quantities is based, won’t defend in a globalized economy can be.

Therefore consistently place on innovation and brand. In addition the search for new markets for the bulk of goods which daily produces the billion people. Finally also strong mental forces at China’s globalization. The proud Chinese want to not only be the factory of the world, but betting internationally competitive global corporations get who can hold a candle the Western competitors. There are several reasons for the expansionist tendencies of the Chinese. One involves the securing of access to sources of energy and raw materials, which are essential for a sustained high economic growth. This is true for crude oil as well as for aluminium, copper, nickel, iron ore and other raw materials. The importance of this resource explains why many Chinese companies operate an aggressive M & A strategy. A spectacular example was the failed attempt of the State oil giant CNOOC in the summer of 2005, the California oil company To buy Unocal.

Mon, December 13 2021 » News