Insights from Norwegian maritime companies who have been successful in entering China

Abstract

Given China’s emerging presence in the maritime industry, specifically in shipbuilding and increasingly also in offshore shipping, there is a growing interest within the Norwegian maritime industry in opportunities in the Far East. As China is relatively young as a modern shipping nation, there are opportunities to be found in the Chinese maritime market. Hence, this thesis aims to provide insights for Norwegian maritime companies who would like to explore these opportunities. Case studies were carried out on three Norwegian maritime companies who have already succeeded in entering the market. To facilitate the analysis, background research was done on the case companies, theories such as the eclectic paradigm and foreign direct investment strategies, as well as academic literature was used. Interviews were then conducted. Through finding out how and why the case companies entered the market, and what they have been doing to ensure the continued success of the firm, the analysis reveals that there are many similarities to be drawn from the case companies that could be helpful to doing business in China. These similarities include: having a global strategy; entering through partnerships and joint ventures; hiring good leaders and focusing on recruitment and training; and instilling a strong company culture towards ethics with an emphasis on corruption. They serve as valuable lessons for Norwegian maritime companies contemplating entering China. This thesis also introduces and analyses future developments and trends such as the China (Shanghai) Free Trade Zone, which has freed up regulations within the maritime industry. The most progressive development is allowing foreign companies to be the majority shareholder (up to 51%) of the joint ventures within the zone. The findings further reveal that potential sectors for Norwegian maritime companies to consider are niche and hightechnology ones such as deep-sea offshore shipping, cruise shipping as well as ship management.