Private Chinese Multinationals and the Long Shadow of the State

The recent rise of Chinese multinationals is rather remarkable. While Chinese multinationals were completely insignificant in 2003 (Yang and Stoltenberg, 2013, p. 72), they range among the most prominent global companies in 2013. As of the latter year, 89 of the 500 largest global companies measured by total revenues are based in China or Hong Kong, with a further six based in Taiwan (Fortune Global 500, 2013). Although the market value-based listing conducted by the Financial Times tends to underestimate Chinese companies due to its requirement of at least 15 percent of shares being held by dispersed shareholders (thereby, for instance, excluding fully state-owned companies), it still lists 45 of the top 500 global companies by March 28, 2013 as being based in China, Hong Kong, or Taiwan (FT Global 500). Chinese companies did not only acquire prominent Western brands such as Volvo and the IBM personal computer division, but they also have become Western household names on their own, as indicated by cases such as Haier or Huawei.