Research on Multinational Corporations’ Investment Strategies in China’s Agriculture: A Case Study of Thailand’s CP Group

Citation

Chen, QiaoBing. (2020). Research on multinational corporations’ investment strategies in China’s agriculture: A case study of Thailand’s CP Group. (Independent study, Master of Business Administration). Bangkok: Siam University.

Abstract

China and Thailand are typical agricultural countries in the world. The two countries have a lot of cooperation in agriculture, and the cooperation is relatively close. In the context of China’s entry into the WTO, the 2015 “Central No. 1 Document” clearly stated that domestic enterprises are encouraged to “go out” and foreign enterprises “bring in” to combine, and policy support for open agriculture should be increased in the new era. Improve the level of foreign investment in agriculture and expand the export of superior agricultural products. Compared with major agricultural countries, China’s agriculture is slightly behind in terms of capital and technology. Foreign agricultural investment has become an important driving
force for China’s agricultural modernization and rural economic development. Especially since the reform and opening up, foreign businessmen have invested more and more in the agricultural sector in China, and many successful companies have emerged. CP Group began investing in China’s agriculture in 1979 and is still one of China’s largest foreign-funded agricultural enterprises. Its investment practices and successful experience are worthy of our investigation and study.

Based on a brief analysis of the status quo of foreign investment in China’s agricultural industry and its main constraints, this paper conducts a more detailed study and summarizes the various stages of development, results achieved, existing problems, and main lessons of the CP Group’s investment in China’s agricultural sector. Propose corresponding strategic measures. The research believes that CP Group’s investment in China’s agriculture has gone through four stages: careful placement, rapid replication, horizontal expansion, and vertical expansion, which have created huge benefits for the company, created conditions for diversified operations, and promoted the development of China’s agriculture. It provides reference for other foreign companies. However, CP Group also has problems that need to be resolved, such as the investment structure to be optimized, the product quality to be strengthened, the investment philosophy to be changed, and the investment area to be adjusted. Further research believes that in the future expansion of China’s agricultural investment, CP Group will actively respond to China’s agricultural policy reforms in the new era in the process of its own agricultural investment internationalization, pursue good economic, social and ecological benefits and other motivations to persist The guiding
ideology of mutual benefit and win-win, enhancing core competitiveness, and optimizing  investment layout, regards serving China’s “three rural” construction, continuously enhancing core competitiveness, and optimizing investment areas and regional layout as the investment strategy of enterprises.

Foreign investment in agriculture is vital to China’s agricultural modernization and rural economic and social development. Through in-depth research, analysis and summary of the development history and successful experience of CP Group’s agricultural investment in China, we analyze its existing problems and propose investment strategies for its future development and growth. This article also proposes to broaden the introduction of foreign investment in China’s agricultural investment Countermeasures and suggestions such as improving the investment environment, strengthening cooperation between domestic and foreign enterprises, and strengthening the guarantee of preferential systems. It can provide a good reference for Chinese local agricultural enterprises to grow bigger and stronger, and even enter the international market to carry out agricultural investment.

Keywords: China, CP Group, Agriculture, Investment, Strategy.

Research on Multinational Corporations’ Investment Strategies in China’s Agriculture: A Case Study of Thailand’s CP Group

Master of Business Administration (International Program), Siam University, Bangkok, Thailand

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