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1 results

  • 5 - Challenges and Failures

  • David K. Tse, The University of Hong Kong, Kineta Hung, Hong Kong Baptist University
  • Book:
    Dynamic Growth of Chinese Firms in the Global Market
    Published online:
    05 February 2020
    Print publication:
    13 February 2020, pp 83-102

  • Summary

    The path for Chinese firms to go global has not been easy. There have been mistakes and failures. While the global community generally accepts the trend of Chinese firms going out, the pace and extent at which Chinese firms globalise nevertheless cause concerns in some host countries. This chapter examines the major types of challenges faced by Chinese firms. They include concerns in product safety (export-related), failures in managing workforce (raw material mining-related), inexperience in making deals (mining-related), failures in obtaining/honouring contracts (infrastructure-related), gaining local support (infrastructure-related), and failures in relieving host-country security concerns (merger and acquisition-related). While some of these concerns are based on host-country perceptions and may not be ‘real’, perceptions matter and carry serious consequences for Chinese firms’ going out efforts.