The Dynamics of the Globalization of Chinese Business Firms

Abstract

Globalization is a dynamic process through which activities at different places and regions are increasingly integrated on a global scale. Since the 1960s, the world economy has been globalizing to a much greater extent than before (Ohmae, 1990; Dunning, 1993b; Dicken, 1998; Hirst and Thompson, 1996). The basic driving force behind this ongoing process of globalization is transnational corporations (TNCs) and their cross-border foreign direct investment (FDI). To date, many ethnic Chinese business firms from Hong Kong, Taiwan and Southeast Asian countries have ventured into different locations within the Asia Pacific region. They are rapidly becoming major players in the regional marketplace. Recently, some of them are even globalizing their commercial and manufacturing operations to become a worldwide competitor in such business fields as electronics and garment manufacturing, property development, financial services, hotel chains and so on. The globalization of Chinese business firms from Asia has become more real than ever.