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2 - China’s Economic Rise and Global Footprints of Chinese Firms

Published online by Cambridge University Press:  05 February 2020

David K. Tse  and
Kineta Hung
David K. Tse
Affiliation:
The University of Hong Kong
Kineta Hung
Affiliation:
Hong Kong Baptist University
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Summary

This chapter begins with a summative view of China’s economic conditions before 1979 and elements of the economic reform that allowed the country to turn around and embark on decades of robust economic growth. The internal (firm-level) and institutional drivers underlying this economic miracle are delineated. In particular, it highlights two key concepts; namely, government managed growth and the institutional supremacy of state-owned enterprises (SOEs). How the SOEs in China rose from their extremely inefficient past to become global economic powers is one of the most attended phenomena in modern global economy. Their role as a key driver of economic growth is discussed along with the complementary role of China’s privately owned firms. The chapter then discusses the firms’ footprints in both developing and developed economies. It ends by examining the myths and challenges of Chinese firms going global.

Keywords

New Institutional TheoryChina’s guided growthstate-owned enterprises (SOEs)state capitalismascension to the World Trade Organisation
Type
Chapter
Information
Dynamic Growth of Chinese Firms in the Global Market
Challenges, Strategies and Implications
 , pp. 14 - 30
Publisher: Cambridge University Press
Print publication year: 2020

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