Forty Years Development of China’s Outward Foreign Direct
Investment: Retrospect and the Challenges Ahead
Bijun Wang, Kailin Gao
Abstract
Outward foreign direct investment (OFDI) has increasingly become an importantmethod for China to integrate into the world economy. This paper comprehensivelyreviews and analyses policy development and the changing pattern of China’s OFDIover the past 40 years. We divide the development into “restricted” (1978–1999), “relaxed” (2000–2016) and “regulated” (2017 onwards) stages. This paper alsoreviews literature on the impact of Chinese OFDI on China and host countries. Despite its generally positive ef ects, large-scale and unbalanced OFDI activitieshave alarmed Chinese policy-makers. Both developing and developed host countrieshave expressed their concern over national security and the misbehavior of someChinese overseas enterprises. Therefore, greater supervision and adjustment fromquantity to quality growth is necessary for the future development of China’s OFDI.
I. Introduction
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II. China’s Outward Foreign Direct Investment Development in 1978–2016: From
Restriction to Relaxation
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III. Regulated: 2017 Onwards
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IV. Impacts of China’s Outward Foreign Direct Investment
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V. The Challenges Ahead
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VI. Concluding Remarks
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