'Emerging Multinationals' - Copenhagen, 09-10-2008 Chinese FDI in Italy first draft Roberta Rabellotti and Marco Sanfilippo* *Phd Candidate in Politics and Economics of Developing Countries Department of Economics, University of Florence [email protected]
17
Embed
'Emerging Multinationals' - Copenhagen, 09-10-2008 Chinese FDI in Italy first draft Roberta Rabellotti and Marco Sanfilippo* *Phd Candidate in Politics.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
• A first phase, starting from the 1960s of “flagship” investments such as the establishment of the commercial office of Air China in Rome in 1986;
• A second phase, from the mid 1980s to the 1990s, characterized by “episodic” investments, among which in 1986 the Chinese Nanjing Automotive Corporation opening a representative office in Turin and in 1988 the Cemate Group which opened a commercial office to start selling Chinese machineries in Italy;
• A third phase, which started at the end of the 1990s and it is characterized by the entry in Italy of Chinese global players (such as Haier, COSCO, Baosteel) as well as by an increasing number of acquisition operations.
The logistic sector: from defensive to offensive market-seeking investments
• COSCO and China Ocean Shipping Company (HQ) in Naples and Genoa;
• Initially, joint-ventures and strategic alliances with local enterprises and setting up of commercial offices (“defensive” investments);
• Recently, acquisition of European companies and investment in new infrastructural projects (“offensive” investments) aimed at the acquisition of market shares and more valuable positions in global logistic chain
The home appliances sector: market and asset-seeking investments
• The home appliances sector is a mature industry, characterized by a producer-driven global value chain;
• Chinese firms have built their production capabilities working initially as subcontractors for developed country MNEs;
• Then, they have been able to develop their own products and brands, initially sold in the domestic market;
• This has allowed to the domestic firms to acquire some competitive advantages on the basis of whose they have begun their internationalization strategies.
• Italy’s manufacturing model – built largely on SMEs – has proven vulnerable to Chinese competition
• Chinese FDI, in perspective, may provide some benefits to domestic economic system:– Focus on strategic competitive advantages;– Fresh capital;– Sale networks;– Access to rapidly increasing global Asian market.
• Nonetheless, more first-hand information is needed to answer basic questions as:– At the country level: Does the pattern of Chinese
investment in Italy differ from other European destinations, if so why? Does the pattern of Chinese investment differ from other investors to Italy, if so why?
– At the local level: How do Chinese investors enter into local linkages? What is the impact (threat or opportunity) of the Chinese presence on the local cluster?
– At the firm level: Are Chinese subsidiaries in Italy building up competences? How dothey transfer within the company these competences acquired locally?