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Bryan Davis: State owned enterprises: Chinese fdi in Canada via the lenses of perceptual, political,
economic and social considerations

values similar to that of Canada. The following cases of Chinese FDI will highlight some of the

many benefits that Chinese FDI can bring to the table.

IBM-Lenovo Takeover

Lenovo’s takeover of IBM’s personal computer business has proven to be one of the most

successful and fruitful acquisitions to date. The takeover is a perfect example of how two

companies with very different cultures can merge and prosper. Since the takeover in 2005 for

$1.5 billion, Lenovo’s sales have skyrocketed from $11 billion to nearly $30 billion. Lenovo’s

stewardship of IBM’s assets has seen the firm leapfrog Acer and Dell to become the second

largest manufacturer of personal computers worldwide.

Figure 3: Lenovo (in red) ascends to new heights in market share

Cirrus Industries

In 2011 China Aviation Industry General Aircraft Company (CAIGA) acquired a 100% stake Cirrus

Industries, the world’s second-largest general aircraft maker, based in Minnesota. During the time of the

acquisition Cirrus was struggling financially yet looking to expand into new markets. The Chinese FDI

provided a needed financial injection and helped save over 500 jobs in the company. More importantly the

financial support provided by the Chinese SOE has helped the company sustain and even expand its

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