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Foreign direct investment by South African companies in the Peoples Republic of China : opportunities and risks

Thesis (MA)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: The study addresses the topic of foreign direct investment in the People's Republic of
China (P.Re.) by South African companies, focusing on opportunities and risks in the
context of 'South-South Co-operation' between the P.RC. and South Africa. Relations
between the two developing countries have only been forged since January 1998 when
South Africa recognised the P.RC. government as the dejure representative of China.
With the Chinese market of 1.3 billion potential consumers proving to be a lucrative
opportunity for all international, multinational and transnational companies, it is
imperative for South African companies to gain a foothold in the Chinese market.
Therefore, entry requirements as well as impediments that could emerge have to be
scrutinised. Analysis of governmental relations currently being forged between the two
states is assessed as well as the wider context of 'Sino-Africa' co-operation. China's
recent entry into the World Trade Organisation (WTO) has and will continue to have a
substantial effect on the international trading system. The implications of this for South
African companies is given considerable attention in order to highlight resulting
opportunities.
Apart from assessmg the current state of relations and identifying investment and
business opportunities, the study also focuses on the method of conducting business in
China which has highly complex rules and regulations for companies entering the P.RC.
An analysis of the different modes of entry is conducted, coupled with a focus on the
cultural sensitivities and norms that are associated with building relationships when
negotiating possible business partnerships. The study finally identifies potential risks that
foreign direct investors need to continually assess, namely, the transfer of political power
to a new generation of relatively young leaders, corruption that is spreading within China
and the restructuring of State Owned Enterprises (SOE's) and the inevitable consequence
of job losses. / AFRIKAANSE OPSOMMING: Hierdie studie spreek die onderwerp van buitelandse direkte investering in die
Volksrepubliek van Sjina (VRS) deur Suid-Afrikaanse maatskappye aan, en fokus op
geleenthede en risikos in die konteks van 'Suid-Suid samewerking' tussen die VRS en
Suid-Afrika. Betrekkings tussen die twee ontwikkelende lande is eers onlangs
gesmee nadat Suid-Afrika in Januarie 1998 die VRS as die dejure verteenwoordiger
van Sjina erken het.
Met In Sjinese mark van meer as 1.3 miljard potensiële verbruikers wat In
winsgewende geleentheid vir alle internasionale, multinasionale en transnasionale
maatskappye skep, is dit imperatief vir Suid-Afrikaanse maatskappye om hulself in
die Sjinese mark te vestig. Dus moet toegangsvereistes asook moontlike hindernisse
noukeurig ondersoek word. Die studie doen 'n analise van betrekkings wat huidiglik
tussen die twee state se regerings gesmee word, en die breër konteks van
samewerking tussen Sjina en Afrika word ook geëvalueer. Die VRS se onlangse
toetrede tot die Wêreldhandelsorganisasie (WHO) het en sal aanhou om 'n wesenlike
impak op die internasionale handelsstelsel te hê. Daar word ook aansienlike aandag
geskenk aan die implikasies hiervan vir Suid-Afrikaanse maatskappye om sodoende
geleenthede uit te lig.
Bo en behalwe 'n evaluering van die huidige stand van betrekkings en 'n identifisering
van beleggings- en besigheidsgeleenthede, fokus hierdie studie ook op die manier
waarop besigheid in Sjina onderneem word, wat uiters gekompliseerde reëls en
regulasies insluit vir maatskappye wat die land betree. 'n Analise van die verskillende
wyses van toegang is onderneem, tesame met 'n fokus op die kulturele sensitiwiteite
en norme wat 'n invloed op die bou van verhoudings tydens die onderhandeling van
moontlike besigheidsvennootskappe kan hê. Laastens identifiseer die studie
potensiële risikos wat buitelandse direkte beleggers voortdurend in ag moet neem,
naamlik die oordrag van mag na 'n nuwe generasie van relatief jong leiers, die
verspreiding van korrupsie, die herstrukturering van staatskorporasies en die
onvermydelike gevolge van werksverliese.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53431
Date04 1900
CreatorsAreff, Sameer
ContributorsDavies, M. J., Stellenbosch University. Faculty of Arts & Social Sciences. Dept. of Political Science.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format91 p.
RightsStellenbosch University

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