Why China Is Behind in Global M&A

A dearth of executives with cross-cultural knowledge and experience managing foreigners poses a big stumbling block, according to McKinsey

Chinese companies, like the multinationals that have come to China over the past two decades, are reaching for opportunities in new markets abroad. Searching for raw materials, talented employees, technologies, brands, and customers, these companies—many virtually unknown outside China—are themselves becoming multinationals (BusinessWeek.com, 6/9/08). In recent years, Lenovo acquired IBM's (IBM) personal-computer unit for $1.35 billion, and the China National Offshore Oil Corp. unsuccessfully bid $18.5 billion for U.S. oil company Unocal (UCL).

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