Economic complexity and the global asset-seeking strategies of Chinese multinationals

This article investigates the role of economic complexity in capturing asset-seeking motives and strategies of global knowledge accumulation by analysing the location decisions of Chinese multinationals. Using data on 14,873 Chinese subsidiaries in 78 countries for 2007-2015, we find that investment is associated with locations with lower economic complexity. This applies especially for destination countries within the OECD and MNCs in knowledge-intensive industries, whereas firms with a strong knowledge base may instead seek out locations with high economic complexity. Results are consistent with a strategy of accessing relatively low-complexity capabilities that can be accumulated to build and reinforce the international advantage and competitiveness of the multinational.