Journal of Chinese Economic and Foreign Trade Studies

“Rushing in where angels fear to tread”?: The early internationalization of indigenous Chinese firms : Table of Contents

Wim Naudé — Mon Sep 28 08:59:09 BST 2009

Abstract:
Purpose – The purpose of this paper is to determine whether there are empirical differences in the extent and motivation of early internationalisation between indigenous and foreign-invested Chinese firms. Design/methodology/approach – Data on 3,948 firms surveyed by the World Bank in 2002 and 2003 in China are used and four hypotheses are tested using regression analysis. Findings – Despite having started with internationalisation relatively more recently than most foreign-invested firms, and having less foreign experience, indigenous firms which internationalise early perform better than foreign-invested firms. Research limitations/implications – The data were not gathered with international entrepreneurship in mind, may not include all relevant control variables, and lack a panel. Originality/value – China is a country noted for its success in internationalisation. However, this has been due, in the most part, to foreign-invested firms, with indigenous firms seemingly being less successful. This makes knowledge of the differences in early internationalisation behaviour of indigenous versus foreign-invested firms potentially interesting.

Becoming multinational: challenges for Chinese firms : Table of Contents

Oded Shenkar — Mon Sep 28 08:59:09 BST 2009

Abstract:
Purpose – The purpose of this paper is to examine the features of Chinese multinational enterprises (MNEs), and identify the obstacles that Chinese firms must overcome if they are to become viable global competitors, as well as some of the strategies that can take them there. Design/methodology/approach – Based on statistical data, the paper examines entry mode, regional and geographical distribution of Chinese outward foreign direct investment. It also discusses the obstacles, weaknesses and strengths of Chinese firms, and suggests where and how such firms can improve their capabilities. Findings – If they are to become global competitors, Chinese firms need to develop an “MNE with Chinese characteristics” which builds on strengths such as a deep understanding of personal networks to solidify coordination and takes advantage of a tradition of appreciation of human relationships. Originality/value – The paper presents a great deal of insight into Chinese MNEs.

The comparison of innovation activities and international trade effect in China and Japan in the era of knowledge economy: Empirical research on patents as an example : Table of Contents

Zhu Zeng — Mon Sep 28 08:59:09 BST 2009

Abstract:
Purpose – The purpose of this paper is to examine the relationship between patent innovation activities and foreign trade competitiveness and analyze China's level of independent knowledge innovation internationally, especially in comparison with Japan. Design/methodology/approach – The approach takes the form of a statistical and econometric analysis of granted patents and trade export effect of China and Japan, based on the monthly data of foreign trade import and export and of patents granted by China's national intellectual property bureau in Japan and China, respectively, from 2004 to 2007. Findings – Through Johansen's co-integration test, Granger causality test and other methods, this paper verifies that a country's inventions can directly promote export trade, and its pulling effect is more visible than the total patents. Tests also manifest that the innovative activities in Japan play a more significant role in enhancing its exports than in China. Comparison of large amounts of data shows that the gap between China and Japan on independent knowledge innovation is obvious. Research limitations/implications – These imply that in the era of knowledge economy, a country's sustainable capacity for independent innovation is the key to trade and national competitiveness. Practical implications – China urgently needs to build a national innovation system; make great efforts to cultivate national competitive advantage centred on knowledge advantage; and improve its overall competitive strength. Originality/value – The paper assesses the importance of innovation activities represented by patents from the quantitative view and the difference of impact degree between China and Japan.

China's pattern of trade and growth after WTO accession: Lessons for other developing countries : Table of Contents

Longyue Zhao, Yan Wang — Mon Sep 28 08:59:09 BST 2009

Abstract:
Purpose – World Trade Organization (WTO) accession marked a new beginning for China's economic, legal and institutional reforms and rapid integration with the rest of the world. The purpose of this paper is to review China's post-WTO transition experience, synthesize and update studies on China's pattern of trade and structural transformation, and provide both positive and negative lessons for other developing countries. Design/methodology/approach – The paper has broadly reviewed the latest policy changes after China's WTO accession, and literatures on China's trade and economic development issues in order to understand the Chinese success and its speciality, and draw some useful lessons for both China's decision-makers and other developing countries. Findings – There are two main findings: first, market liberalization alone is not sufficient, and economic system reform and the liberalization are closely related and complement and promote each other. Second, experimentations via special economic zones (SEZs) and opening to foreign direct investment (FDI), which facilitated and supported cluster development and learning-by-doing, are needed for industrial upgrading and export competitiveness. Originality/value – The paper demonstrates the wisdom of China's simultaneous pursuit of domestic economic system reform, and opening to the international market. However, China has also paid a high social and environmental cost for its rapid growth. It is important for developing countries to have an exclusive, balanced and sustainable strategy in the future development.