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Report

30 Jun 2017

Author:
Ben Miller, Dost Bardouille & Jason Tower

Confronting Complexity: Lessons Learned from Engagement with Chinese Enterprises

This report includes preliminary findings regarding Chinese business practices that either help build positive relations with local communities or engender community dissatisfaction and opposition. The findings presented here can provide insights and options for working with Chinese companies to advance social engagement, enhance contributions to development and strengthen conflict risk management practices....

...[O]verseas investment of Chinese State Owned Enterprises (SOE) and private companies has increased exponentially...many companies become quickly frustrated at their inability to identify and manage various risks, particularly at the societal level. Chinese corporate projects have, in many cases, provoked community dissatisfaction and unrest, and in some cases contributed to broader tensions and instability within the host state.

This has resulted in substantial losses incurred by Chinese companies, particularly when involving highly complex environments such as Libya, Myanmar, or the DRC. This experience is leading to a growing awareness in China about the need to learn from responsible business practice approaches in order to better manage risks to and impacts of their overseas investments...

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