Investing in manufacturing ventures in China

• Main Authors: Lee, Ju-Ann, Loh, May Yee, Wan, Angeline Shen Peng
• Other Authors: John Edward Beck
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Finance::Investments
• Online Access: http://hdl.handle.net/10356/63954
• Institution: Nanyang Technological University

In 1992 alone, direct foreign investment projects in China topped US$57 .51 b, up by 380% over 1991. Average foreign projects have risen to US$1.13m each in terms of the contract investment that has been agreed with the government, up by 23% from 1991. This current frenzy to invest in China has led to the employment of fifteen million Chinese workers by foreign joint-ventures. The objective of this study is to find out why and how Singapore manufacturing firms have chosen China to established their production facilities; each company's decision making processes ; the benefits and problems expected and encountered. This study has been conducted largely through case studies and literature review. The first part of this report introduces the current situation of China and Singapore. It covers China's historic background, infrastructure, market situation and business culture; both countries' economy and costs of factors of production. The second part of the report will justify the choice of the manufacturing industry as the basis of the study and presents five case studies. Interviews were conducted with companies that have already made investments in China. The final section will look at the analysis of each case study using the eclectic paradigm theory. This report will end by summarising in a comparative study across the five companies to identify the commonalities in the investment strategy of these companies.