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This case study uses Alibaba/Ant Group as an example to show how the meteoric growth of e-commerce and the platform economy in China has transformed the way that business is done and has made Chinese consumers into some of the world’s most active online sellers and purchasers. It focuses especially on the constantly evolving interactions between Alibaba/Ant Group, the Chinese government, and international investors. The case study demonstrates that the expansion of large Chinese corporations within China and overseas, as well as their occasional setbacks, cannot be understood without a broader knowledge of the legal structures underpinning cross-border investment and awareness of multiple competing political interests in China.
The case also gives insights into the multinational links of Chinese e-commerce firms, such as international buyers purchasing Chinese goods online through Taobao and AliExpress, investors buying Alibaba’s shares on the New York Stock Exchange (NYSE), and Alibaba acquiring e-commerce firms overseas, especially in Southeast Asia and developing countries elsewhere.
Finally, the case explains how e-commerce platforms like Alibaba/Ant Group evolved into online banking and financial services. Their huge size and financial complexity have led to systemic risks, and this has caused the Chinese government to regulate these firms more tightly.
In 2018, baijiu giant Jiangsu Yanghe Distillery Co., Ltd. acquired 12.5% of one of the largest global wine conglomerates in Chile, VSPT Wine Group, for US$65 million. The transaction was the first of its kind in the South American country, in which a Chinese baijiu producer purchased a stake in a Chilean wine company. The transaction involved considerable strategic and business planning and the support of experienced legal and financial advisors. This case study first analyzes how a change in alcohol consumption habits in China was a critical factor for Yanghe in deciding to carry out the transaction and the rationale behind choosing a target from the “new wine world.” It then explores how the Chile-China Free Trade Agreement has increased the amount of wine exported to China and how Chilean wine is perceived as “value for money” among Chinese consumers. Finally, it discusses how this transaction is an example of how Chinese state-owned enterprises have learned rapidly from their outward foreign direct investments and how Chinese investors are increasingly using experienced advisors to help inform their overseas investments.
This case study examines a Chinese-Omani cooperation project in the Special Economic Zone at Duqm, Oman (SEZAD) and illustrates how its significance extends beyond the China–Gulf relationship with broader implications for trade and security in the wider region. The Sino-Oman Industrial Park is the major industrial ecosystem that is being developed within the SEZAD and is expected to attract investment of around US$10 billion. Even though the project began as one of the ports along the Maritime Silk Road, it has gained importance mainly due to being located at the strategic transshipment point for goods moving between Africa, Asia, and Europe and providing a crucial node in facilitating global trade and connectivity. This case study first discusses the overall context and considers the investment environment of Oman as well as Oman’s relationship with China. It then concentrates on the SEZAD and highlights several aspects that make this case unique. These include the involvement of multilateral funding, the involvement of Chinese provinces in the development of an overseas industrial park, and issues for China as it strategically invests in a neutral country, Oman.
Against the backdrop of rising interest in if not alarm about Chinese overseas direct investment (ODI), A Casebook on Chinese Outbound Investment: Law, Policy, and Business (hereinafter, the Casebook) is designed to provide fact-based and neutral case studies to help inform teaching in professional schools, including law, policy, and business schools. Comprised of fifteen cases, based on primary source materials, and written by experts, many of whom are either from or have extensive experience in the host state in question, the Casebook provides teaching material for educators and other concerned parties. The case studies are written with specific overarching objectives in mind: to shed light on the decision-making, policies, and practices of Chinese firms; to understand how Chinese firms adapt to challenging regulatory environments; and to assess what kind of effects Chinese projects have overseas, particularly in developing states where China’s footprint may be most pronounced. This Introduction lays the groundwork to address overarching questions, including, what are Chinese companies, what are China’s international investment strategies, what are the trends in Chinese ODI, what is the relationship between Chinese ODI and the Party-State, and what are the effects of Chinese capital in host states?
This chapter foregrounds the social life inside COBRA as one of Britain’s most successful hunting teams. It suggests that this social dimension to hunting is perhaps as important to a team's survival as is the reason they begin hunting in the first place.
This case study presents innovative work by a Chinese state-owned enterprise (SOE) to use corporate social responsibility (CSR) as a key component of its business strategy in Kenya. AVIC International’s (“AVIC INTL’s”) core business is exporting Chinese machinery and vocational training to enhance the use of equipment in host countries and to build local training capacity. Through active learning with stakeholders in Kenya, AVIC INTL has developed the “Africa Tech Challenge” to host training and competitions for candidates from Kenya. This project, first initiated in 2014, later became a signature CSR project for the company, one which was repeated annually and received Chinese government awards for companies’ overseas brand-building. This case study shows how CSR can be an effective business strategy for Chinese SOEs operating in African states. Chinese SOEs have started to use CSR projects to gain market access, build a positive image, and cultivate ties with host country politicians, industry, and civil society. The study also demonstrates how Chinese SOEs, over the course of overseas operations, have experienced a steep learning curve in host countries and how, despite structural asymmetry vis-à-vis China, African actors can actively shape the behavior of Chinese SOEs that are financially powerful and technically strong.