The Impact of Coastal FDI on Inland Economic Growth in China

Abstract

The rapid rise of China's outbound direct investment (ODI) in the past decade is a significant economic phenomenon. According to China's Ministry of Commerce, in 2014 Chinese companies invested US$116 billion in 156 countries - about 45 times more than in 2012. If new investments by Chinese companies with an existing foreign presence abroad were included, China's ODI in 2014 would have exceeded inbound FDI by about US$20 billion - that is, China became a net capital exporting country in 2014. The surge in China's ODI has encountered resistance and some consider Chinese investment a threat. This chapter addresses selective concerns about Chinese companies and the resistance they have encountered in their ODI experiences.