DefinePK

Abstract

This paper systematically reviews the challenges and strategic responses of the internationalization of Chinese companies into European markets. This research work has identified a number of key obstacles that Chinese firms meet in Europe concerning entry strategies and operational modes, resulting from regulatory barriers, cultural differences, and competitive pressures, which have adverse impacts on market entry and operations by Chinese firms in Europe. The review shows that the complex, fragmented European regulatory environment and its stringent requirements, especially under the General Data Protection Regulation, have remained a big challenge in terms of compliance. Cultural differences entail large adjustments in product offerings and market strategies to suit various European consumer preferences and business practices. Furthermore, the high competitive environment within the European markets has meant that these Chinese companies must continuously innovate and differentiate in order to generate and sustain competitive advantage. Indeed, strategic responses identified include investment in local regulatory expertise, cultural localization, and brand building and innovation. This paper provides an overview of the relevant challenges and strategies for Chinese firms in Europe, and it also points out that much more research is needed on the changing dynamics of internationalization in this context.
Keywords: Internationalization, Regulatory Barriers, Cultural Differences, Competitive Pressures, Chinese Firms, European Markets.