ABSTRACT
This research investigates the main motivation driving China’s foreign direct investment (FDI) in France. The authors endeavour to ascertain if Chinese FDI in France fits in with the priorities of the Chinese Go Global policy and if it can be explained by the main reverse FDI theories. On the basis of 17 interviews with managers of Chinese subsidiaries in France, the authors identify sales in French and European markets as the main driver of Chinese FDI in France. Some Chinese firms also appear interested in French-speaking African markets and in competing back in the Chinese home market. The second FDI motive is asset-seeking. Chinese companies want to improve their global competitiveness by acquiring technology, advanced production methods, innovation capabilities, internationally recognised brands, and managerial skills in France. The research also reveals that the Chinese companies investing In France benefitted from the Go Global policy, receiving direct and indirect government support. The FDI objectives that the Chinese firms in France pursue fit in with two main priorities of the Chinese Go Global policy, which are the improvement of the Chinese production capacity in order, on the one hand, to meet the domestic needs of Chinese consumers and to ensure long-term balanced economic growth, and on the other hand, to increase the level of competitiveness of Chinese enterprises in global markets. This study’s findings support both the ‘linkage, leverage, and learning’ perspective and springboard theory of reverse FDI. The authors also suggest a new bridging theory, namely that Chinese FDI in France also aims at building bridges to African markets.
