With an increasing importance of outward foreign direct investment ( OFDI ) by multinationals ( MNCs )

from China in advanced economies

this multiple contextual embeddedness is particularly evident when Chinese fi rms acquire Western fi
rms for competitive catch-up

In essence, M&A deals are no longer simply vehicles to secure natural resources but catalysts to
reenergize Chinese companies to compete more effectively in the global economy

Against a backdrop of slower domestic growth and an increasing emphasis on innovation and global
competition, Chinese companies need to rely on strategic M&As to build their high-end capabilities and
upgrade their global value chains,

Widespread criticisms of Chinese investment in advanced economies, focus on the state ownership of
many Chinese acquiring firms, state backing and resulting unfair competition in global takeovers, the
high levels of debt held by many of the acquiring firms, and their inexperience as latecomers in global
markets

Moreover, Chinese firms are strongly motivated by acquiring technologies, brands, managerial know-
how, and other critical strategic assets.

As with other advanced countries hosting FDI from China, the United States has both security concerns
related to incoming foreign investment, and popular political and economic concerns inflaming
protectionist sentiment and public debate is susceptible to alarmist theories of Chinese intentions

(They are obtaining hard-to-trade goods with the interactions of acquiring firms that are from developed
countries)

After initial reluctance, however, governors, mayors, and other local officials have intensified efforts to
promote Chinese FDI, and this is yielding substantial benefits in terms of job creation and viable
community building

After all, the benefits from Chinese presence in advanced countries are showing up enormously and in a
variety of ways

For many of the target companies, Chinese acquirers are appealing in several respects. In particular,
many target firms have identified a number of complementarities between the motives driving Chinese
acquisitions and their own strategic objectives, and expressed their intentions to capitalize on these
complementarities

For example, many target firms solicit the assistance of their Chinese acquirers to gain better access to
the lucrative Chinese market

In exchange, target firms offer their own international experience to support the internationalization of
their Chinese acquirers’ businesses

Similarly, some target firms solicit the support of their acquirers in cost-reduction efforts

In turn, target firms are often willing to pass on considered, yet limited, know-how and technology to
acquiring firms, and offer to engage with them in joint efforts at research and development (R&D).

In addition, target firms often value the injection of capital by Chinese acquirers,

Chinese companies are attractive bidders because they are often rich in cash, from profits made in the
lucrative Chinese market, or as a result of state support
The attractiveness of these deals to target firms is often enhanced further by the maintenance of a
strong separation between them and the acquiring firms, following a “light-touch” post-acquisition
integration strategy (Liu & Woywode, 2013 ). Under this approach, target firms are able to keep their
identity and organizational structure and to continue business at their original locations, while most
decisions continue to be made by their own management. This strategy helps to mitigate concerns
about the potential undesired loss of know-how and reduces other apprehensions about Chinese
investors (Liu & Woywode, 2013 ; Xia, Ma, Lu, & Liu, 2014 ). Many Chinese companies have pursued this
approach to acquisitions in advanced economies in a variety of industries. Although success is not
guaranteed, this approach fits well with their particular circumstances as latecomers for competitive
catch-up in the global marketplace and aims at mitigating the aforementioned concerns regarding
Chinese acquisitions of foreign firms in advanced countries (Su, 2013 ; Williamson & Raman, 2011 ).

Finally, massive investment from China can stimulate local economy and generate jobs for many
advanced economies

Chinese investors also see the value in getting closer to their customers, as evidenced by companies like
Fuyao Glass, the largest auto glass manufacturer in the world, building facilities in Moraine, Ohio, and
Decatur, Illinois, to serve the US domestic market.

A case in point is Fuyao Glass America, a state-of-the-art auto glass factory, part of global Fuyao Glass
Corporation of Chinese billionaire, Mr. Cho Tak Wong, which produces 23% of the world ’ s car windows.
Reported by correspondent Jim Axelrod of CBS News on November 22, 2016, this more than $500
million greenfield investment in a manufacturing plant in Moraine, Ohio, revived a 2008 closed Ohio
General Motors (GM) plant and created 3,000 jobs. “Mr. Cho, are you making America great again?”
Axelrod asked. “Yes!” he replied. Axelrod asked Jim Reid, a supervisor at the plant, what his message
would be to President elect Donald Trump about Chinese businessmen in the United States. “Just give
them a try,” Mr. Reid said.

the major challenge is that the contexts of China vary substantially from those of developed countries
on a number of dimensions

For example, governments and government-related entities are not only setting the foreign investment
rules in China, but they are active players in the economy, for example, through state-owned enterprises
(SOEs) or state-controlled firms

Moreover, network-based behaviors of Chinese firms are common

Therefore, some assumptions of mainstream Western theories are less appropriate for Chinese
companies, particularly regarding their overseas investment strategies and behaviors

the assumption of rational actors is likely to become less appropriate. While Chinese companies may
aim to act rationally, they often face more information asymmetries and are more likely to follow tacit
rules and are subject to more complex informal constraints on their business and foreign investment
activities

the question is how they can use their domestic networks when venturing in advanced economies.
Given that Chinese home institutions are often plagued by underdeveloped law enforcement, weak
labor protection, and lack of transparency, how will Chinese firms respond, as competitors or
collaborators, in advanced markets with institutional norms that are alien to them

Accordingly, Chinese investors face challenges in managing multiple embeddedness across

the interaction of Chinese investors with their various local contexts depends on the extent to which
these contexts are not only interrelated but also overlain by temporal and spatial dimensions of context

A spatial dimension to Chinese investment concerns the geographical locus of Chinese firms in terms of
their global, state, regional, and location distribution. The spatial dimension also includes the spatial
concentration of institutions, policies, and social norms supporting or even encouraging Chinese
investment behavior. This dimension can include the mobility of Chinese investors to different
geographic areas with different regulations, laws, and networks, thus affecting their ability to
internationalize far beyond a single country

A first aspect of contextual interactions concerns the link between ownership and governance and
different contexts

Relatedly, work on the role of governance structures and processes in facilitating Chinese firms in
different contexts continues to be rare. Given that the temporal dimension of organizational contexts
develops over time, we may explore the nature of boards of directors in Chinese investors in advanced
economies that address a temporal aspect of context concerning the threshold between start-up and
professionalization

Then, how will they reorganize their learning processes when they start operating in advanced
countries, where no such structures are available?

A second aspect relates to understanding how contextual differences between advanced countries and
China influence different configurations of Chinese firms’ ecosystems not only through investigating the
macroeconomic conditions, but also through social networks that focus on customer, supplier, and
service networks for the internationalization of Chinese enterprises

Chronological analysis of how such social networks evolve would likely yield interesting insights into the
characteristics and dynamics of differing Chinese firms’ ecosystems regarding their investment behavior
and strategies

How this evolution shapes and is shaped by institutional, organizational, and sectoral changes also
warrants attention

Accordingly, adaptive capability and capability upgrading play important roles in the international
performance of Chinese firms

A third aspect concerns the development and operationalization of institutional policies aimed at
stimulating Chinese investment outflows and how these should be informed by the wide variety of
existing contexts

, from a spatial perspective, an important question is scalar and interrogates the relationships between
“national” systems of FDI and “region based” or “industry-specific” systems

In addition, Chinese investment in advanced economies is about mobilizing and coordinating the
resources and capabilities within the complex environment to build competitive advantage

Furthermore, the extent to which Chinese firms become experienced global players, for example, as a
result of the number and success of earlier investments may introduce a temporal influence on the type
of international activities undertaken
Meyer contends that firms in emerging markets can draw revenues from overseas by penetrating
previously inaccessible domestic markets and then renting their distribution and service channels to
foreign competitors. On top of that, emerging-market companies and Chinese companies in particular
can also combine knowledge platforms with distribution and service platforms to create markets for
innovative products and services, again, rent these platforms to overseas competitors.

Fang and Chimenson ( 2017 ) deal with the contextually challenging issue by analyzing the Chinese
acquisition of Volvo Cars of Sweden. Specifically, by analyzing an overall negative media coverage in
Swedish media in the period of 2009–2014, they question the conventional assumption of linking media
coverage to firm performance in a linear way. In essence, they propose, that there exist no static
prefixed causal relations between media coverage and corporate performance in the complex context of
Chinese firms’

Specifically, they propose that these post-merger integration challenges, which are primarily caused by
informal institutional differences, can be overcome by developing organizational capabilities for
integration and employing mechanisms for appropriate control and justice during the integration
process

They fill the research gap by exploring whether cross-border M&As may lead to an improvement in
corporate governance of Chinese acquiring firms. In particular, they examine the impact of crossborder
M&As on earnings quality of Chinese MNCs. By analyzing the data on cross-border M&As of all
nonfinancial nonutility firms listed on the Shanghai and Shengzhen Stock Exchanges over the period
between 1998 and 2013, they find that the acquisition of a target firm from a developed country leads
to a significant improvement on the earnings quality of Chinese acquiring firms.

Lattemann and his colleagues also incorporate “time” as a variable into the framework by introducing
and explaining the concept of “dynamic embeddedness” as an interaction dimension to reflect the
inherent dynamics on all levels and actors. Given the complexity and novelty of the phenomenon, their
multilevel frame of analysis may deepen our understanding of the internationalization of Chinese firms
by jointly considering the institutional perspective and the resources and networks, while taking into
account interactions between country, industry, and the firm characteristics.
Libro:
Throughout the period of economic reform, mainstream opinion of the All-China Federation of Trade
Unions (ACFTU) has been largely negative in the developed countries. The most important criticism
is that the ACFTU does not meet ILO standards of independence due to its constitutional and legally
enshrined acceptance of Communist Party of China (CPC) leadership. Although the Chinese
government signed the International Covenant on Economic, Social and Cultural Rights in 1997, it
entered a reservation to the clause in Article 8 pertaining to freedom of association.

The consequences of the absence of competition for membership and influence from alternative
trade unions are seen in the slow rate of reform to its traditional modus operandi and weakness at
enterprise level.

All of China’s four Constitutions to date have been based on the revolutionary notion that the
working class, led by the CPC, is the leading class, in effect the ruling class.

Of equal weight are the policies of the state itself: the absence of freedom of association, the state’s
prioritizing of employment creation before ‘decent work’; restrictions on residential rights that have
excluded off-farm workers from full urban citizen rights even as they have retained the right to land;
and expanding but monitored and supervised civil society; an incomplete legal system for governing
industrial relations; a restricted media and the fact that China remain a one-party state in which the
organization of class interests beyond the structures permitted by the CPC is still inconceivable.

Combined with the country’s sheer size and diversity, this array of objective and subjective factors
suggests that it is not possible to speak of a unified working-class response. Some commentators
have drawn the conclusion that Chinese workers are as disparate as ‘grains of sand’.

The absence of independent trade unions does not automatically preclude working class influence
on most aspects of the government’s labor relations policies.

Two important developments:

1. Slight and ongoing shift in the labor market in favor of workers due to labor shortages,
demographic trends, a discernible change in the central government’s agricultural policies and
the consolidation of new geographic areas of economic growth, growing sense of rights
awareness and collective strength, particularly among migrant workers.
2. Make use of the tension between central government laws and regulations, and local
government’s need to maintain stability in an environment of increased rights awareness, labor
shortages and higher expectations.

Difference in the workplace attitudes among the younger migrant workers that has not been lost on
labor activists. Far more ‘aware of the labor law and the rights they should have under it’.

ALSO CHANGE IN LONG-TERM AMBITIONS. Many have no intentions of going back to the land if they can
avoid it.
ACFTU has embarked on a number of almost exclusively top-down strategies in attempts to
increase its credibility among workers by forging a direct link between labour rights, trade union
activity and social harmony. These include: membership campaigns beginning in 1999; the
theoretical inclusion of off-farm migrant workers in the formal working class since the 14th Trade
Union Congress in 2003; participation in law-drafting and trial implementation of regulations on
collective bargaining and collective wage consultation; case intervention at the levels of mediation,
arbitration and the courts; the direct election of trade union officials and committee members at
enterprise level etc. As essentially a government institution, the ACFTU has played a major role in
the field of labour law-drafting.
Indivisible from the destruction of decent work in the state sector has been the (re)construction of
indecent work in the private sector. The establishment of a non-state labour regime has been
premised on two major developments, one economic, the other social.