Book contents
- Frontmatter
- Dedication
- Foreword
- Contents
- Contributors
- Preface
- Part I The Environment of International Business
- Part II Strategy and Entrepreneurship in International Business
- Part III Managing People in International Business
- Part IV Operating in International Markets
- 19 Learning from experience: Purchasing industrial machinery from China
- 20 Country of origin labelling and the New Zealand seafood industry
- 21 Ubisoft: Competing in the global video gaming industry
- 22 Taobao vs eBay: The fight between a local nobody and a global giant
- 23 The internationalisation of COSCO and its investment in New Zealand
- References
23 - The internationalisation of COSCO and its investment in New Zealand
Published online by Cambridge University Press: 05 August 2013
- Frontmatter
- Dedication
- Foreword
- Contents
- Contributors
- Preface
- Part I The Environment of International Business
- Part II Strategy and Entrepreneurship in International Business
- Part III Managing People in International Business
- Part IV Operating in International Markets
- 19 Learning from experience: Purchasing industrial machinery from China
- 20 Country of origin labelling and the New Zealand seafood industry
- 21 Ubisoft: Competing in the global video gaming industry
- 22 Taobao vs eBay: The fight between a local nobody and a global giant
- 23 The internationalisation of COSCO and its investment in New Zealand
- References
Summary
The China Ocean Shipping (Group) Company (COSCO) is one of the world’s largest shipping companies and the fifth largest container carrier (Alphaliner 2013). In 2012, COSCO ranked 384th on the Fortune Global 500 company listing, with US$28.7 billion in annual revenue (CNN Money 2012). COSCO was one of the first major Chinese companies to invest in New Zealand, and is regarded as a successful Chinese investment pioneer in New Zealand. This has major implications for other Chinese companies considering investing in New Zealand. Since the free-trade agreement (FTA) between New Zealand and China came into effect in 2008, there has been significant growth in trade. Exports from New Zealand to China have increased by 152 per cent, and today China is New Zealand’s second largest bilateral trading partner. Recognising the economic importance of China to New Zealand, in 2012 the New Zealand government announced priority goals of doubling trade between the two countries by 2015, as well as increasing bilateral investment (NZTE & MFAT 2012).
COSCO’s development
COSCO owns or controls over a thousand companies globally, with shipping and logistics being the company’s two main business activities. In 2012, COSCO operated over 800 modern merchant vessels with a capacity of 50 million deadweight tonnes (DWT). In addition to shipping and logistics services, COSCO has expanded its global value chain to include ship-repairing and port-management services. From a small shipping company to a key operator in the global shipping market, COSCO’s development can be divided into four distinctive stages:
- Type
- Chapter
- Information
- Dynamics of International Business: Asia-Pacific Business Cases , pp. 225 - 235Publisher: Cambridge University PressPrint publication year: 2013