Response Strategies to Market Access Policies in Developed Countries: The Case of Chinese Enterprises in Australia

　　Abstract: Because of their mature market economies and legal systems, developed states appear more and more attractive as investment destinations for Chinese enterprises.While so, a key political risk that Chinese companies must respond to is the market entry oversight frameworks maintained by developed states.This article discusses the evolution of market entry policies in Australia since 2007, and introduces three case studies as a means of providing a menu of strategies to Chinese companies to manage such risks: China Nonferrous Metal Mining Group Company’s acquisition of Lynas Corporation Ltd; the acquisition of OZ Minerals Company by China Minmetals Group; Shandong Ruyi Group’s purchase of Cubbie Station Farm.In order to respond to the market barriers found in developed countries, China needs to proactively promote and sign high quality international investment treaties with key investment destination countries.At individual investor level, Chinese companies need to carefully understand the needs and concerns of host countries, identify local partners in these countries, and become familiar with local communities and the political environment.They also need to recognize that there is the possibility of the sudden introduction of conditions on investments, and make timely adjustments to their investment strategies.

　　About the Authors:Fu Ruolan is a MA Student in the School of International Studies of Peking University; Zha Daojiong is a Professor in the School of International Studies of Peking University