The international expansion of Chinese auto firms: typology and trends

Abstract

In the recent wave of outward FDI by Chinese firms, the automotive industry stands out as one of the sectors accounting for a relevant share of the total, with Europe being the favourite destination. After providing a detailed map of such FDI from 2003 until 2008, the paper discusses the major host country factors driving foreign location choices of Chinese auto firms, comparing OEM vs. suppliers, state-owned vs. privately-owned companies. A few interesting differences between different groups of investors emerge. Selected cases are discussed.