Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia

© 2017 L. Curran and M. Thorpe. All rights reserved. This chapter explores the extent and nature of outward Foreign Direct Investment (OFDI) by Chinese companies in the wine sectors in the Bordeaux region of France and in Western Australia. Primary field research was undertaken along with analysis o...

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Main Authors: Curran, L., Thorpe, Michael
Format: Book Chapter
Published: 2016
Online Access:http://hdl.handle.net/20.500.11937/56696
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author Curran, L.
Thorpe, Michael
author_facet Curran, L.
Thorpe, Michael
author_sort Curran, L.
building Curtin Institutional Repository
collection Online Access
description © 2017 L. Curran and M. Thorpe. All rights reserved. This chapter explores the extent and nature of outward Foreign Direct Investment (OFDI) by Chinese companies in the wine sectors in the Bordeaux region of France and in Western Australia. Primary field research was undertaken along with analysis of secondary trade data. Results indicate that overall, the level of Chinese OFDI is relatively low. The motivations of investors in both wine regions were identified as the following: to exploit growing domestic wine markets; to achieve reliability and security of wine supply and to leverage the prestige that tends to be associated with this industry globally. In Bordeaux the 'appellation' was a clear motivation, as were the vineyards' historic buildings. In Australia, cementing existing business relationships, as well as access to Australian residency were seen to be strong drivers of investment. Recently, both trade to China and new investment from China have fallen in the industry, due, in part, to the impact of an anticorruption drive by the Chinese government. Some managerial implications for the industry are highlighted and directions for future research identified.
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spelling curtin-20.500.11937-566962017-09-27T10:49:02Z Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia Curran, L. Thorpe, Michael © 2017 L. Curran and M. Thorpe. All rights reserved. This chapter explores the extent and nature of outward Foreign Direct Investment (OFDI) by Chinese companies in the wine sectors in the Bordeaux region of France and in Western Australia. Primary field research was undertaken along with analysis of secondary trade data. Results indicate that overall, the level of Chinese OFDI is relatively low. The motivations of investors in both wine regions were identified as the following: to exploit growing domestic wine markets; to achieve reliability and security of wine supply and to leverage the prestige that tends to be associated with this industry globally. In Bordeaux the 'appellation' was a clear motivation, as were the vineyards' historic buildings. In Australia, cementing existing business relationships, as well as access to Australian residency were seen to be strong drivers of investment. Recently, both trade to China and new investment from China have fallen in the industry, due, in part, to the impact of an anticorruption drive by the Chinese government. Some managerial implications for the industry are highlighted and directions for future research identified. 2016 Book Chapter http://hdl.handle.net/20.500.11937/56696 10.1016/B978-0-08-100754-9.00013-1 restricted
spellingShingle Curran, L.
Thorpe, Michael
Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia
title Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia
title_full Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia
title_fullStr Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia
title_full_unstemmed Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia
title_short Chinese Foreign Investment in Wine Production: A Comparative Study of the Bordeaux Region in France and Western Australia
title_sort chinese foreign investment in wine production: a comparative study of the bordeaux region in france and western australia
url http://hdl.handle.net/20.500.11937/56696