Chinese SOEs expanding abroad are seen as China expanding.
More than any other actor in China, SOEs expanding abroad will face the brunt of a growing concern about China’s overseas development and intentions. Constructive and innovative strategies which deal with all stakeholders involved are essential to ensure safe passage for Chinese State Owned Companies aiming to achieve growth requirements and success. China-i has worked with the top State Owned Enterprises in China as strategic risk and communication adviser. The list below is not exhaustive.
The biggest threat to Chinese SOEs is social risk.
The biggest threat to Chinese SOEs’ growth and investments abroad is strategic risk, especially social risk. Strategic risks are risks that cannot be mitigated by investment alone, but rather through the careful use of strategic communications and social risk management. As Chinese investment flows outwards, social acceptance of such investments will require innovative solutions for ensuring their sustainability and profitability. Over-reliance on traditional foreign stakeholders such as local government and partners and not enough attention paid to local popular opinion and sentiment has left most Chinese SOE investments hostage to social risk. Social risk is often the major source of financial risk for such projects, yet it is often not identified early enough or at all.
Chinese SOEs have to operate in sometimes hostile environments.
Chinese State Owned companies need foreign assets, markets and know-how to grow and yet they encounter increasingly hostile foreign conditions. Managing SOE technological reputational, social/reputational risk becomes the crucial factor in the success of any transaction. And it must be carried out smoothly as part of the general management of the company to ensure better results. China-i can rely on an excellent network of political, commercial and cultural operators outside China which can endow our strategy solutions with efficient and swift implementation as well as excellent results.
Chinese SOEs need to communicate better and more widely.
As China enters a period of sustainable growth, the reform of the state sector will mean that Chinese SOEs will need to communicate better to a growing number of stakeholders some of whom may be foreign investors looking to place funds into Chinese State privatized assets. Since 2008, China-i has been providing its renowned coaching to SOE bosses and spokespersons. This includes the much sought after coaching provided by our company at China Executive Leadership Academy since 2012. We also offer one-to-one coaching for Chinese bosses.