Work

China’s regulatory framework for outward foreign direct investment

Year: 2014

Type: article

Abstract: China has become the world’s third largest outward investor, behind the United States and Japan. A growing body of literature suggests that China’s regulatory framework for outward foreign direct investment (OFDI) is a determinant of the country’s rising OFDI. This article presents a holistic review of that framework, including some possibilities for its improvement. Overall, China’s framework serves two objectives: to help Chinese firms become more competitive internationally and to assist the country in its development effort. In pursuing these objectives, the regulatory framework has moved from restricting, to facilitating, to supporting, to encouraging OFDI, but there are still strong elements of administrative control that make it cumbersome. State-owned enterprises (SOEs) seem to benefit particularly from the current framework when internationalizing through FDI.

Source: China Economic Journal

DOI: 10.1080/17538963.2013.874072

Authors: Karl P. Sauvant, Victor Zitian Chen

Institutions: Columbia University, University of North Carolina at Charlotte

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Peace, justice, and strong institutions

Open Access status: green

Funders: Markedsmodningsfonden, Asia Pacific Foundation of Canada, Australian National University, National Development and Reform Commission