Chinese Overseas Investments and Multilateralism
CHINA AND THE WORLD The Long March Towards a Community of Shared Future for Mankind, The Role of busines, 2, Societa editrice il Mulino, 2021, ISBN:ISBN 978-88-15-29466-1, 35-42
5 Pages Posted: 29 Mar 2022
Date Written: September 5, 2021
We cannot imagine the multilateralism without foreign direct investments (FDI), free
movement of capital across borders, equal treatment of foreign and domestic companies and
openness for technological transfers.
China is a relatively new player on the international FDI arena. Historically, the privilege to
play a role on this market belongs to the most developed countries. While the newcomers
always come with an enthusiasm, they are accepted with a prejudice. Many developed
countries, including USA and the European Union (EU), have introduced procedures for
screening the FDI coming from China, as well as restrictions for the market entry in sectors
linked to the national security and high technology sectors. Many studies have fuelled
political and public scepticism about Chinese overseas investments, while other have focused
on the limitations of FDI entry to the Chinese market. Most of their conclusions come from
the lack of a common theory and research on the nature and impact of Chinese FDI abroad
and foreign investments in China.
This report essay aims to answer the following questions:
Why Chinese outward investments have become a concern for some countries?
Is FDI conventional theory sufficient to explain Chinese FDI?
What makes Chinese investments abroad specific?
Answering these questions, we try to elaborate on several policy recommendations as to how
to build common understanding and unlock the potential of FDI from and to China, which
will contribute to strengthening the multilateralism in the challenging political landscape.nter Abstract Body]
Keywords: China, Foreign Direct Investment, multilaterism
JEL Classification: p 16, b 17, b 27
Suggested Citation: Suggested Citation