Chapter 14
1.We refer the interested reader to Sharman (2012) for discussions of and reasons for this interesting phenomenon of large Chinese capital flows to OFCs.
2.National Bureau of Statistics of China defines overseas direct investment as follows: “Overseas Direct Investment refers to investment made by domestic enterprises and organizations (referred to as domestic investors) in foreign countries and Hong Kong SAR, Macao SAR and Taiwan province in forms of cash, physical investment and intangible assets, and the economic activities centering on operation and management of those enterprises are under the control of domestic investors. The content of overseas direct investment mainly reflects one economic entity by investing in another economic entity to achieve its goal of lasting interest.”
3.A concise definition for SOEs follows: “the term ‘SOEs’ refers to enterprises where the state has significant control, through full, majority, or significant minority ownership” (OECD 2005, 11).
4.Success in the present context differs from the use of the term in previous chapters, and implies completion of transactions.
5.Greater China includes Mainland, Hong Kong, Taiwan, and Macau.
Chapter 15
1.SASAC has SOEs at also the provincial level.
2.The following discussions concerning the SASAC rules and circular draw heavily from Norton Rose Fulbright (2014).
3.Special purpose vehicles are entities that are created to meet narrow, specific, or temporary objectives of an enterprise. These entities are used to mitigate the financial risks of the parent company.
4.The other two high-profile cases of Chinese acquisitions in Australia that were challenged by FIRB include Sinosteel–Midwest Corporation and Minmetals–OZ Minerals. See Mendelsohn and Fels (2014) for details.
1.For detailed discussions of the cross-border acquisition strategy of three Chinese enterprises, namely Lenovo, Huawei Technology, and Nanjing Automobile Group, see Rui and Yip (2008).
2.For detailed discussions of the Lenovo-IBM deal, see Stahl and Koster (2013).