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1
Chapter 1 Introduction
1.1 Rationale of the Study and Research Questions
1.1.1 Why Study Acquisitions by Chinese Companies in the U.S.
China has been regarded as “the world's biggest factory”1, the manufacturing
base for the biggest international names such as Nike, Nokia and Motorola. In
contrast, Chinese brands—with the exception of Tsingtao Beer and a handful of
others—have not yet gained international recognition. Until recent years, the
global dimension of China’s economic rise had been a flood of exports to the
world and a surge of foreign investment in China, as major international brands
scrambled to gain a favorable position in the world's most dynamic market.
In 2005, Lenovo acquired IBM’s PC division, and it became a symbolic
beachhead for other Chinese businesses eager to build their global presence
through acquisitions or investments in overseas companies. These efforts have
won the support of the Chinese government, which is determined to drive
foreign direct investment (FDI) in regions ranging from Latin America to
Australia and from Europe to the United States.
In the U.S., however, Chinese companies seeking international competitiveness
will undergo close scrutiny. Political sensitivities, a lack of managerial
experience, and contrasting business cultures, all lead to complications. For
1 Zhibin Gu and Andre Gunder Frank, China's global reach: markets,
multinationals, and globalization (Fultus Corporation, 2006) 42.
Object Description
| Title | China's investment in the United States and the public relations implications: A case study of the Lenovo-IBM acquisition |
| Author | Liang, Shuyan |
| Author email | shuyanliang.usc@gmail.com; shuyanli@usc.edu |
| Degree | Master of Arts |
| Document type | Thesis |
| Degree program | Strategic Public Relations |
| School | Annenberg School for Communication |
| Date defended/completed | 2011-04-30 |
| Date submitted | 2011 |
| Restricted until | Unrestricted |
| Date published | 2011-05-04 |
| Advisor (committee chair) | Kotler, Jonathan |
| Advisor (committee member) |
Floto, Jennifer Wang, Jian (Jay) |
| Abstract | This paper discusses Lenovo’s acquisition of IBM’s personal computer division in 2005 as a case in point to explore issues involved in China’ investment in the United States, particularly its public relations implications. It is demonstrated that media coverage underscored the complications and tensions in these supposedly free market activities. This paper presents the manifestation of controversial issues such as state-ownership of businesses, national security, and economic protectionism, as Chinese enterprises invest in the United States through mergers and acquisitions. It provides an account of Lenovo’s communication strategies and gives suggestions to better manage corporate reputation and brand images for Chinese companies that are seeking overseas investment. |
| Keyword | Lenovo; IBM; China; United States; foreign direct investment (FDI); mergers and acquisition (M&A); public relations (PR) |
| Geographic subject (country) | China; USA |
| Coverage date | 2005/2010 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m3902 |
| Contributing entity | University of Southern California |
| Rights | Liang, Shuyan |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | cisadmin@lib.usc.edu |
| Filename | etd-Liang-4567 |
| Archival file | uscthesesreloadpub_Volume32/etd-Liang-4567.pdf |
Description
| Title | Page 8 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 1 Chapter 1 Introduction 1.1 Rationale of the Study and Research Questions 1.1.1 Why Study Acquisitions by Chinese Companies in the U.S. China has been regarded as “the world's biggest factory”1, the manufacturing base for the biggest international names such as Nike, Nokia and Motorola. In contrast, Chinese brands—with the exception of Tsingtao Beer and a handful of others—have not yet gained international recognition. Until recent years, the global dimension of China’s economic rise had been a flood of exports to the world and a surge of foreign investment in China, as major international brands scrambled to gain a favorable position in the world's most dynamic market. In 2005, Lenovo acquired IBM’s PC division, and it became a symbolic beachhead for other Chinese businesses eager to build their global presence through acquisitions or investments in overseas companies. These efforts have won the support of the Chinese government, which is determined to drive foreign direct investment (FDI) in regions ranging from Latin America to Australia and from Europe to the United States. In the U.S., however, Chinese companies seeking international competitiveness will undergo close scrutiny. Political sensitivities, a lack of managerial experience, and contrasting business cultures, all lead to complications. For 1 Zhibin Gu and Andre Gunder Frank, China's global reach: markets, multinationals, and globalization (Fultus Corporation, 2006) 42. |
