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Chinese Outbound Foreign Direct Investment

Chinese OFDI is important in strengthening political ties with resource-rich developing countries. It has reached commercially and geoeconomically significant levels and begun to challenge international investment norms. This helped to establish the infrastructure needed to integrate China into global trading system and used to secure the commodity inputs needed for growth. Ignorance of local environment, as well as thinking of exploiting raw materials without economic development can create tensions. OFDI is not liquid and has the host country's concerns about national economic security. Increasing transparency and taking good care of national economic security and fixing domestic problem of Chinese OFDI could alleviate blockages in global investment flow. OFDI also reduces dependence on exports for growth and increases the RMB's purchasing power abroad.

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China Studies

Category: Politics

Total terms: 12

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  • HOSEOKNAM
  • (Beijing, China)

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