The Impact Of Corporate Diplomacy Practices Of Chinese Companies Investing In Germany On China’s Nation Brands

Chinese companies’ going global has become an important part of China’s economic and internationalisation strategy.In the context of globalisation,Chinese companies face an increasingly complex business environment in overseas market,and need to consider political,social and environmental information and responsibilities more comprehensively,and improve their brand influence and risk response capabilities.Secondly,the role played by companies has gone beyond that of traditional producers.In their interactions with host governments,institutions and people,companies are influenced by the relationship between the host and home countries,and play an important role in participating in building the social environment of the host country,and thus become a key link in promoting bilateral relations.Corporate diplomacy(CD)research can therefore help companies to better respond to the challenges of globalisation,develop smarter international strategies and enhance their competitiveness in international markets,while contributing to China’s national image and brand building.This study explores the issues of CD faced by Chinese companies in the process of going out through content analysis and multi-case analysis approach,using Chinese companies in Germany as a case study.The theoretical significance of the study is to explore the specific ways in which multinational companies implement CD and to improve the interaction mechanism in the "host country-companies-home country" relationship.The practical significance of the study is to suggest ways for Chinese enterprises to better practice CD and create a favourable business environment overseas.Key questions include the challenges and opportunities for Chinese companies,how Chinese companies can address these challenges through CD,and how Chinese nation branding affects Chinese companies’business decisions and activities abroad.This study conducted interviews with ten Chinese firms operating in Germany and proposed a model of the "host country-MNC-home country" interaction mechanism,which found that host countries influence the behaviour and decisions of firms by providing or undermining the corporate legitimacy.The study finds that firms can influence the social environment of the host country through CD.In the interaction between firms and their home countries,this study finds that corporate behaviour and country branding form a positive feedback relationship,where home country’s brandings can influence the activities of MNCs,helping to build a business environment friendly to them or hindering their foreign business activities in the form of stereotypes,while the behaviour of firms can also shape the country brand through reverse country-of-origin effects.In the case of Chinese companies going abroad to Germany,this study finds that the German market influences the corporate legitimacy of Chinese companies through five main aspects:regulatory standards,politics and ideology,media shaping,human environment and consumer environment,thus forming an influence and constraint on their decisions and behaviour,while Chinese companies are able to consciously strengthen communication and cooperation with local stakeholders,understand the local culture and business environment and are able to respect local laws and customs.However,there is still room for improvement in the areas of stakeholder relations,reputation protection and lobbying behaviour,and Chinese companies should further improve their corporate diplomacy by enhancing their internal intercultural communication skills,risk identification and response capabilities,as well as making long-term development vision plans.Secondly,in recent years,six national brands have had varying degrees of influence on the decisions and behaviour of Chinese companies operating abroad in Germany,including "Confidence of a Great Power","Responsible Power","BRI","Made in China 2025" and Chinese culture.As Chinese companies continue to develop at the levels of product,communication,core stability,CSR and business engagement,the negative perceptions developed earlier have improved and have positively shaped the Chinese nation brand through the reverse country-of-origin effect.The contribution of this study is twofold.Firstly,it fills a theoretical gap in the relationship and interaction mechanism between corporate diplomacy and nation branding by proposing a conceptual relationship model,and secondly,it examines the opportunities and challenges encountered by companies actually going abroad through case studies,summarises the practice of Chinese companies in corporate diplomacy in recent years,and makes policy recommendations for the government to better support companies going abroad.