Seeking Competition Competence From FDI

In this article, through the observation of an increasing number of foreign direct investments (FDI) from less strong Chinese competitors and the review of traditional FDI literature, we found out that the untraditional FDI theory based on the concept of imbalance can effectively deals with the variety of FDI phenomena nowadays, as opposed to the existing FDI theory, Furthermore, taking ChunLan Group as an example, we explain how ChunLan balance herself in term of manufacturing, market size, brand, marketing network and technology to enhance her competence, by using the imbalance theory, through analyzing Chinese air conditionar's industry and the imbalance factors inside ChunLan since she lost her leadership in China's air conditioner market. Therefore, we draw the following conclusion:Setting the goal of balancing those imbalance factors during the FDI, using Janpan and Korea's successful experiences as reference, following the right FDI strategy based on fully self-understanding, selecting matched FDI opportunity and destination, those less strong Chinese competitors can establish and perfect their competence in terms of manufacturing, brand, technology, marketing network through FDI, then, enlarge the market share worldwide in order to fulfill the strategy of enhancing enterprise's core competence.