Conclusion

By the late 1990s, there was a high degree of firm-level concentration on a

global scale in industries covering aerospace and defence, pharmaceuticals,

automobiles, power equipment, mining, pulp and paper, brewing, banking,

insurance, advertising and the mass media (Nolan et al., 2002). The headquarters

is at the centre of the business system of the leading global firms. In the same

period, the Chinese government initiated the strategy of ‘restructuring and

flotation’ to reform the large state-owned enterprises in oil and petrochemicals,

telecommunications, and financial services. Evolved from government ministries,

these large corporations are regarded as China’s ‘pillar industries’ in both

economic and strategic terms. Following PetroChina, Sinopec, CNOOC, China

Unicom, and Chalco were each listed successfully on the international stock

exchanges in New York, Hong Kong and London. The reform has now

progressed into the financial service sector. The Bank of China was listed in

Hong Kong in 2002. It became the first of the ‘big four’1 state-owned banks

floated on the international market. However, large Chinese corporations face

deep challenges in their organisational restructuring and building up their

competitive capabilities.