The China Effect - Chinese technology enterprises going global

Abstract

From personal and professional passion towards the economy of China, I based my paper on the technology sector in China, as it is one of the most strategically important segments of the economy. Trailing the technology sector in the Middle Kingdom. I based my research on finding supportive arguments for the way Chinese tech firms internationalize and the role the government’s reforms play in creating the environment for ‘going global’. Using mainly secondary sources while drawing upon the resources of three disciplines (economics, international business and political science) I examined three hypothesis. I defined the China effect as the way Chinese companies are shaping the future global business landscape and concluded that China is developing in a unique fashion. According to the internationalization theories, Chinese tech firms’ global expansion is best described by behavioral approaches, more closely the Uppsala/stages model. To show real world examples and apply the case method, I showcased two of the leading Chinese high-tech companies (Lenovo and TCL) and concluded that China’s rise in high-technology is substantial and showing an increasing trend. However, it can also be said that although these companies are well known and are globally present, they are not yet as dominant as their Western competitors. The importance of the paper and findings can be contributed to better understand the implications China’s rise in technology means for the rest of the world.