Chinese Companies Go Abroad (Introduction) - Seeking Alpha - 0 views
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With China facing little of the credit squeeze problems afflicting much of the rest of the world, many Chinese companies plan to take advantage of the global downturn to make greater inroads into the West.
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Companies plan to increase dramatically their adoption of M&A as a main growth strategy over the next five years, and cash rich companies will likely use the current decreased valuations abroad as a way to gain entry on favorable terms. In this way, the financial crisis can be an opportunity for cash rich, low debt or debt free Chinese companies.
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The most popular strategy was the creation of partnerships, with partners ranging from distributors to academic institutions to PR and law firms, followed by organic and export-focused growth. While M&A is currently used much less frequently, respondents expect to use this strategy with increasing frequency going forward, as a way to tap into existing brand awareness overseas, as well as existing sales channels and distribution networks, talent pools, and to gain first hand insight into overseas markets.
