Acquisitions of Chinese State‐Owned Enterprises by Multinational Corporations: Driving Forces, Barriers and Implications for HRM

Abstract

This article explores the driving forces for, barriers to, and trends and patterns of acquisition of Chinese state‐owned enterprises (SOEs) by foreign investment and its implications for HRM and the experience of work for the workers. It questions the level of objectives alignment between the Chinese side and the FDI during the acquisition of Chinese SOEs. Issues related to the Chinese managerial skills and behaviour in acquisition negotiation are discussed as well as the policy making, administrative and practical role of the local government. The article argues that FDI's acquisition of Chinese firms creates unique management issues which require further research, particularly in the area of HRM, in order to establish the likely similarities and differences between acquisitions in other countries and those taking place in China and the implications of this for the globalizing businesses.