John,

I could not access your attachment.  Also, what ownership structures are these companies adopting in Australia and how large are they?  I have an interest in Chinese investments in global agriculture -- China is currently the largest purchaser of farm land in the world, for example, but we have little understanding of medium or long term repercussions of their management styles and investment strategies.  I have testified on my research before the US Senate on the purchase of Smithfield Foods by Shuanghui (see first link below), which may be useful for you to understand Chinese investments in US agriculture.  But, Chinese companies' behaviors have varied widely in other (especially third world) countries. A lot depends on existing regulations in these countries and other factors affecting competition and oversight.

A recent book of mine, "Subsidies to Chinese Industry: State Capitalism, Business Strategy and Trade Policy" (Oxford University Press) provides some reasons for the international expansion of Chinese State-owned Enterprises.  More information on the book is on my profile page (see second link below).

Usha 

http://www.ag.senate.gov/hearings/smithfield-and-beyond_examining-foreign-purchases-of-american-food-companies

https://www.researchgate.net/profile/Usha_Haley2

Thank you Usha for your very generous and kind response.  I will look into your book and other publications as well as your testimony.  I submitted my thesis mid last year (Honours) and it received a Deans commendation.  I have discontinued academic research and returned to the private sector but will continue to have an active interest in this area, and indeed will now monitor your work.  I have provided the abstract for my thesis below:

This research looks at new phenomena associated with how private versus SOE ownership status affects Chinese EMMNE legitimacy building strategies in a sensitive sector like the Australian agricultural industry. This is broken down into two specific questions asking if differing ownership is more effective at foreign investment and if either is more sensitive to building legitimacy in a new market. Data was collected using semi-structured interviews with two industry informants intricately involved in two large transactions, triangulated using document analysis of media reporting on each deal, and my near 30 years involvement in the industry. Whilst the sample size does not allow the conclusions to be generally applicable, I found that private firms are more flexible and adaptable in their approach, are more inclined to branch out carefully, after strong relationships have been built in the destination market. Chinese SOE’s are actively supported by government in their home market and tend to be more strongly hinged to their parent, where legitimacy is somewhat a given, and are more surprised at the difficulty in attaining it in foreign markets. The tough environment of private Chinese EMMNE’s in China causes them to be more pragmatic and transparent, willing to accept the ‘cut and thrust’ of the democratic process as a normal part of the price of doing business in differing markets. So recently shifting away from a centrally planned economy, it is to be expected that Chinese EMMNE’s will not yet be as sophisticated at foreign investment. However, they are very fast learners. Foreign markets could engage better with Chinese EMMNE’s by making allowances for their short-term transitional limitations and providing an investment ‘road map’ to guide them.

John