A theoretical and empirical investigation into investment activities of technologically-intensive Chinese state-owned enterprises in the UK

This paper investigates why technology-intensive Chinese state-owned enterprises (SOEs) are investing direct in the UK. It also examines how investment strategies are being used to enter the UK and gain access to technology. Using an inductive multiple case study approach the paper finds that Chinese SOEs are motivated by external (national industrial policy) and internal factors (vision, ambition and the need for new and more advanced strategic assets). With regard to entry strategies it finds that Chinese strategic asset-seeking SOEs are not confined to M&As as a means of accessing technology and knowledge. They are also using greenfield projects for this purpose. Both investment strategies appear to follow a two-stage process. In the first stage the focus is on existing technology originally developed by the newly acquired subsidiary, while in the second, the focus would seem to shift to building additional R&D capacity and creating new technologies.