Australia has become an important investment destination for China，yet Chinese companies encounter a range of problems when investing. By regarding the problems as the Liability of Foreignness and examining them through the lens of the institutional theory，this thesis takes Chinese companies’ involvement in the sale of S.Kidman &Co Ltd as a case for study. This thesis searches for the regulatory，normative and cognitive barriers faced by the Chinese companies when they bid for the Kidman portfolio and explores the measures taken to overcome the obstacles.