In the first edition of this semester’s Critical Issues Confronting China series, Ji Li, John & Marilyn Long Professor of U.S.-China Business and Law, University of California – Irvine, discusses the behavior of Chinese multinational corporations in the face of geopolitical tensions, particularly between the United States and China. He highlights the differences between state-owned enterprises (SOEs) and privately owned enterprises (POEs), noting that SOEs prioritize compliance with Chinese regulations and are subject to extensive regulation by the state, while POEs prioritize profit maximization and adapt to the local institutional context. Li also discusses the coping strategies of Chinese multinational corporations, including lobbying, compliance, and litigation. Discussant William C. Kirby, Spangler Family Professor of Business Administration, Harvard Business School, notes that current tensions between the U.S. and China have led to a decline in U.S. openness to foreign investment, which may have long-term consequences for American economic power.
Watch the full talk via the Vimeo embedded video below or on YouTube.