As the exports of some foreign companies increase and as they face increased competition and slower market growth in their home market, overseas market entry through Greenfield Investment will be imperative to be competitive in overseas markets and to access capabilities (technology, skills, etc) which are not available in the home market.
While Chinese conglomerates are still struggling with mergers and acquisitions abroad, aspiring Chinese multinationals are increasingly setting up Greenfield operations abroad.
Shenzhen-based Huawei, the fourth-largest telecoms manufacturer in the world, established its first European office in Sweden in early 2001. Now Huawei Europe has subsidiaries in UK, Germany, France, Italy, the Netherlands and Sweden, and has nearly 40 offices across Europe. Huawei Europe’s annual revenue reached 2 billion USD in 2007.
|
 |