Chinese Multinationals

China Monitor - Issue 10 Aug 2006August 2006 – Issue 10

Chinese companies are striving toward multinational status. At present, there are twenty Chinese firms ranked within the Fortune 500 list of the global economy’s largest companies. Over the next two decades, it is likely that this number will increase three-fold.

The drivers of China’s going global strategy include securing resource assets, capturing of market share and acquiring brands and technologies.

Chinese largest state-owned and state-invested enterprises are rapidly establishing their presence in Africa. There are now over 800 major Chinese companies at present in the African economy. Their business strategy is driven by the need to secure key commodity & energy assets as well as capturing under-tapped markets.

Key sectors for China’s emerging global players in Africa are energy, mining, telecoms, construction and agribusiness. China Inc. is engaging the continent assertively and is seemingly less cognisant of risk than companies from traditional markets. Africa is an emerging market that is providing a welcoming market for Chinese capital and products. How this expanding trend will transform Africa’s economic landscape will play out over the coming years. What is certain is that Africa will be a very different economic environment due to forces exerted by China.

Download PDF – China Monitor – Issue 10 – Aug 2006