Corporate governance of Chinese multinational enterprises

The chapter explores the main issues of multinational corporate governance that arise from parent-subsidiary relationships and the differences between internal and external environments. This includes internal structural changes due to cross-border operations and external institutional differences like laws, regulations, and cultural norms. These factors lead to various governance challenges, making the governance of parent-subsidiary relationships central to MNEs’ performance and governance effectiveness. It then focuses on the evolution of the corporate governance of Chinese MNEs by offering new insights into the impact of state ownership and political connections on the governance and international strategies of Chinese MNEs. It further provides a fresh look at management practices within Chinese MNEs, emphasizing the influence of social networks and cultural norms. It also explores the diverse roles of stakeholders, including policymakers and investors, in shaping the governance landscape of these enterprises. The chapter concludes by underscoring the need for Chinese MNEs to transition towards market-oriented governance models and align with international governance standards. This shift is critical in the global business environment, further complicated by the recent geopolitical tensions and the COVID-19 pandemic, marking an essential evolution in the corporate governance of Chinese MNEs.