ABSTRACT
The global economy today presents unprecedented opportunities for Chinese investors looking to extend their reach beyond their country’s borders through international acquisitions. Chinese investors’ enthusiasm for outward direct investment is however frequently met with headwinds. Some of these have a cultural or political root; others arise from legal and regulatory complexities or technicalities encountered when dealing with overseas counterparts. In many cases, it is a lack of sufficient thought around how an acquisition may fit within an institution’s wider strategic aims that undermines both the acquisition process and any attempt at post-acquisition integration.
In this chapter, we examine in detail the complex dynamics and key challenges that Chinese investors often face in their outbound acquisitions. We also offer practical context for our analysis by looking at a number of case studies from recent years.
