The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy

Why does the Chinese economic modernization strategy include transnationalization of Chinese enterprises, the creation of numerous Small and Medium Foreign Affiliates (SMFAs)? The research hypothesis suggests that in the context of globalization, modernization requires influencing other participants...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autor principal:	D. B. Kalashnikov
Formato:	article
Lenguaje:	EN RU
Publicado:	MGIMO University Press 2021
Materias:	china belt and road initiative tnc small and medium enterprises economic modernization gvc national interests globalization International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/641afd1e1d57419bb0b0ead561f80d8d
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:641afd1e1d57419bb0b0ead561f80d8d
record_format	dspace
spelling	oai:doaj.org-article:641afd1e1d57419bb0b0ead561f80d8d2021-11-23T14:50:42ZThe Role of Chinese Small and Medium TNCs in the Modernization of the National Economy2071-81602541-909910.24833/2071-8160-2021-1-76-174-196https://doaj.org/article/641afd1e1d57419bb0b0ead561f80d8d2021-03-01T00:00:00Zhttps://www.vestnik.mgimo.ru/jour/article/view/2668https://doaj.org/toc/2071-8160https://doaj.org/toc/2541-9099Why does the Chinese economic modernization strategy include transnationalization of Chinese enterprises, the creation of numerous Small and Medium Foreign Affiliates (SMFAs)? The research hypothesis suggests that in the context of globalization, modernization requires influencing other participants in the global economy beyond national borders. SMFAs are able to transform the structure of the economy of the PRC and host countries to ensure demand for national innovations and highly skilled labor. The literature review highlights the challenges of modernizing the national economy in the context of globalization, as well as the advantages of TNCs and participation in global value chains (GVCs). However, the question of the connection between catchup development and transnationalization of local business, especially small and medium-sized ones, has been understudied. The novelty of the study is in the analysis of the sectoral and geographical structure of the foreign activities of Chinese TNCs and the analysis of the problems of the participation of Chinese TNCs in Western global value chains (GVCs). The main findings reveal that the creation of SMFAs is a response to the challenges of globalization, which impede the modernization of the Chinese economy. Powerful state support to SMFAs makes them dependent, and thus the government is able to direct the goals of private enterprises in accordance with the national interests. The major field of Chinese SMFAs is the promotion of products manufactured in the PRC in the American and European markets, and it contributes to the development of the national innovation system, redistributes the added value in favor of national manufacturers, and stimulates the development of hightech industries of the PRC. In developing countries SMFAs are represented by trade and manufacturing outlets within the “Belt and Road Initiative” They come after the infrastructural projects of large business, grouped in clusters, have strong coordination with other Chinese TNCs, and create Chinese GVCs. The main role of Chinese SMFAs in the modernization of the PRC economy is to ensure national interests, including industrial sovereignty and the growth of wellbeing of citizens as the basis of innovative demand. In the modern international labor division, this is achieved by a shift to high valueadded operations, accompanied by a struggle for the markets of developed countries and for sites for the low valueadded operations inside Chinese GVCs in developing countries.D. B. KalashnikovMGIMO University Pressarticlechinabelt and road initiativetncsmall and medium enterpriseseconomic modernizationgvcnational interestsglobalizationInternational relationsJZ2-6530ENRUVestnik MGIMO-Universiteta, Vol 14, Iss 1, Pp 174-196 (2021)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	china belt and road initiative tnc small and medium enterprises economic modernization gvc national interests globalization International relations JZ2-6530
spellingShingle	china belt and road initiative tnc small and medium enterprises economic modernization gvc national interests globalization International relations JZ2-6530 D. B. Kalashnikov The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy
description	Why does the Chinese economic modernization strategy include transnationalization of Chinese enterprises, the creation of numerous Small and Medium Foreign Affiliates (SMFAs)? The research hypothesis suggests that in the context of globalization, modernization requires influencing other participants in the global economy beyond national borders. SMFAs are able to transform the structure of the economy of the PRC and host countries to ensure demand for national innovations and highly skilled labor. The literature review highlights the challenges of modernizing the national economy in the context of globalization, as well as the advantages of TNCs and participation in global value chains (GVCs). However, the question of the connection between catchup development and transnationalization of local business, especially small and medium-sized ones, has been understudied. The novelty of the study is in the analysis of the sectoral and geographical structure of the foreign activities of Chinese TNCs and the analysis of the problems of the participation of Chinese TNCs in Western global value chains (GVCs). The main findings reveal that the creation of SMFAs is a response to the challenges of globalization, which impede the modernization of the Chinese economy. Powerful state support to SMFAs makes them dependent, and thus the government is able to direct the goals of private enterprises in accordance with the national interests. The major field of Chinese SMFAs is the promotion of products manufactured in the PRC in the American and European markets, and it contributes to the development of the national innovation system, redistributes the added value in favor of national manufacturers, and stimulates the development of hightech industries of the PRC. In developing countries SMFAs are represented by trade and manufacturing outlets within the “Belt and Road Initiative” They come after the infrastructural projects of large business, grouped in clusters, have strong coordination with other Chinese TNCs, and create Chinese GVCs. The main role of Chinese SMFAs in the modernization of the PRC economy is to ensure national interests, including industrial sovereignty and the growth of wellbeing of citizens as the basis of innovative demand. In the modern international labor division, this is achieved by a shift to high valueadded operations, accompanied by a struggle for the markets of developed countries and for sites for the low valueadded operations inside Chinese GVCs in developing countries.
format	article
author	D. B. Kalashnikov
author_facet	D. B. Kalashnikov
author_sort	D. B. Kalashnikov
title	The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy
title_short	The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy
title_full	The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy
title_fullStr	The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy
title_full_unstemmed	The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy
title_sort	role of chinese small and medium tncs in the modernization of the national economy
publisher	MGIMO University Press
publishDate	2021
url	https://doaj.org/article/641afd1e1d57419bb0b0ead561f80d8d
work_keys_str_mv	AT dbkalashnikov theroleofchinesesmallandmediumtncsinthemodernizationofthenationaleconomy AT dbkalashnikov roleofchinesesmallandmediumtncsinthemodernizationofthenationaleconomy
_version_	1718416650712121344

The Role of Chinese Small and Medium TNCs in the Modernization of the National Economy

Ejemplares similares