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16 Geo. J. Int'l Aff. 172 (2015)
The Rise of Chinese Multinationals: A Strategic Threat or an Economic Opportunity?

handle is hein.journals/geojaf16 and id is 180 raw text is: Business&Economics The Rise of Chinese Multinationals A Strategic Threat or an Economic Opportunity? Christoph Lattemann & 11an Alon The questions of how and why Chinese firms globalize have captured the attention of scholars in recent years and have become a hotly debated topic. The expansion of Chinese multinational enterprises (MNEs) is often perceived to be a threat to global security, and China's current strategy to encourage its enterprises to invest overseas (called a going- out policy) raises serious concerns about geopolitical issues.' However, the motivations behind the globalization of Chi- nese MNEs are largely misunderstood because of the unusual way in which they globalize. Their goals are not to destabilize global security or geopolitics; rather, economic motives drive Chinese outward foreign direct investment (OFDI). This article will explore the how and why of Chinese MNE expansionism, as well as the current relevance and scope of the internationalization of Chinese firms. By comparing the latest theories with the existing realities, this article will expose the singularity of the globalization of Chinese MNEs. The Rise of Chinese Multinationals and Their Motives. According to International Monetary Fund data, China surpassed the United States in terms of GDP based on purchasing power parity (PPP) in October 2Qo4, mak- Christoph Lattemann is Professor for Busi- ness Administration and Information Man- agement at the Jacobs University Bremen. He is also an international business consultant and a member of the executive board of the Chinese Globalization Association, among others. Ilan Alan is Cornell Chair of International Business. He has taught courses in top Chinese MBA programs and is also an international business consultant as well as a featured speaker in many pro- fessional associations. 1172] Georgetown Journal of International Affairs

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