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[Excerpt] According to the Bureau of Economic Analysis, Chinese foreign direct investment (FDI) in the U.S. increased more than three-fold - from $3.3 billion to $14 billion - between 2010 and 2015. This rapid rate of expansion was accomplished in a variety of ways. In many cases Chinese firms formed their own wholly-owned subsidiaries, but often they chose to merge with, acquire, or otherwise engage in formal alliances with U.S. counterparts. In 2015, for example, Chinese multinationals completed 103 mergers and acquisitions in this country, an increase of 30% over the previous year. Despite current political uncertainties, there is every reason to believe that the upward trend in Chinese FDI in the U.S. and, thus, in the frequency and intensity of both competitive and cooperative interactions and relationships between Chinese and American firms will continue in the years ahead. Thus, the more we can learn about the motives and methods of Chinese MNCs operating in the U.S., the better off we will be. Although these issues have generated some research, there clearly is more to learn. This study represents a solid step toward filling the gap.


Recommended Citation
Ouyang, C. (2017, May). Dragons in the west: Localizations strategies of Chinese multinationals in developed economies (CAHRS ResearchLink No. 3). Ithaca, NY: Cornell University, ILR School, Center for Advanced Human Resource Studies.