The east is red; Why more Chinese companies are moving west
This is the second part of a two-part study of China's growing overseas business clout by George McKibbens, a Guangzhou-based writer and educator. who teaches history at South China Normal University and writes for Guangzhou News Express.
One of the best ways for Chinese marketing executives to raise their companies’ profile is to ride on the coat-tails of a foreign brand. One example that springs to mind is Shandong sporting goods company Qiaodan, which ended up in a lawsuit with Michael Jordan, accused of stealing the basketball legend’s name.
Even more comical is the Guangzhou wine company Mark 1818, named after Karl Marx who was born in the year 1818. It’s wise to name your company after a dead foreigner who can’t sue you, although perhaps not so wise to pick someone who’s synonymous with anti-capitalism.
The most successful Chinese brands are not just looking overseas for marketing ideas. They’re looking abroad for resources they can’t find at home, creating job opportunities in the western world.
Access to new markets, talent, and IP protection have sent China’s version of Fortune 500 companies to Europe and North America. In the past 10 years Chinese companies have retained jobs in Europe and the United States, through investment and acquisition.
In 2010 Zhejiang Geely Holdings Group, a Chinese Auto-Maker purchased Volvo. They retained the manufacturing headquarters in Sweden, rather than relocating the factory and Swedish design. A Chinese owned foreign Brand.
Similar to Lenovo’s 2004 purchase of IBM, the company saved jobs in research and development.