Shifting Landscapes: How Chinese SOE Foreign Investments Affect Recipient Country Market Concentration


This project analyzes the 514 foreign investments made by Chinese SOEs between January 2005 and June 2015 and considers their effects on market competitiveness as measured by country-andindustry-level HHI. The results describe how the investment volume and Chinese government stake in an SOE significantly affect HHI, but other measures of Chinese state influence do not. These findings reflect the confirmed legal advantages and prevalent M&A behavior adopted by SOEs in virtue of them being vessels for CCP foreign policy. Prospective recipient countries may extrapolate conclusions to limit the type or size of Chinese SOE investments given this information. To further confirm the validity of these results, alternative indicators for market competitiveness and state control over SOEs ought to be explored.