Chinese Corporations' FDI: Research On The Compare Between Greenfield Investment And Cross-Border M&A

Since 1990s, Chinese corporations' FDI has developed quickly, which draws theglobal attention. Greenfield Investment was the main mode of Chinese FDI, but withthe surf of the 5th cross -border M&A, the number and the sum of Cross-border M&Aby Chinese corporations have increased in evidence. Obviously, Chinese corporationsare in face of the problem of the choice between Greenfield Investment andCross-border M&A.This essay will begin with the actuality of Greenfield Investment andCross-border M&A of Chinese corporations. Then, it will analyse which factorsinfluence the choice between the two entry modes, by building a cost-benefitmodel. Next, it will demonstrate how the location factors, industry factors andenterprises's special factors affect Chinese corporations choosing them. Last but notleast, it will study two famous Chinese cases, to analyse the characteristics and theinvestment bennefit of the two entry modes, and sum-upthe investment experience forthe orther Chinese corporations.Finally, we find that the choice between Greenfield Investment and Cross-borderM&A of Chinese corporations relies not only on the entry cost of enterprises, thevehemence degree of scare buying the target enterprise, the integration costs andeffects, but also on the location factors and industry factors. But there are somethingdifferent between our findings on these factors and the previous.