China’s Inward and Outward Investment Policies

by Ken Davies

This article was originally published by Asian Century Institute on 31 May 2013

FDI (foreign direct investment) inflows to China have changed in size and significance, according to Davies. China remains the largest recipient of FDI among developing countries and FDI continues to play a disproportionately large role in promoting China’s trade, investment and tax revenue generation, albeit not as large as before.

A number of structural changes occurred in recent years, including a slight revival of equity joint ventures, faster growth in services-sector FDI than in manufacturing, and a reorientation from the Eastern Region to the Central and Western Regions. In addition, China has been rapidly becoming an important source of outward foreign direct investment (OFDI), a trend that was reinforced by the global financial and economic crisis.   Read more »