This document analyzes why Chinese companies increasingly invest abroad for strategic assets. It presents a dynamic resource-based view approach arguing that latecomer Chinese firms invest abroad to access strategic resources unavailable domestically. The paper examines three Chinese companies - Haier, TCL, and Lenovo - and finds they invest abroad through various means like greenfield investments and acquisitions to acquire strategic assets like technology, brands, and management skills needed to overcome weaknesses and enhance their global competitiveness. Their ability to integrate and utilize assets acquired abroad depends on their absorptive capacity.

5. An Asset-seeking Model for Outward Chinese FDI Outward FDI from leading Chinese firms in DCs Asset-seeking motives (strategic resources such as technology, marketing expertise, managerial know-how, reputation, and brandname) Strategic Needs (vulnerable strategic positions and strategic aspiration) Absorptive Capability (Competitive position & related int’l experience) To become globally competitive firms by addressing competitive weakness and enhancing competitive advantage