China’s FDIs in Asia
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Code : ITF0002
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Region : :China |
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BACKGROUND As the Chinese government opened up the economy for FDIs in 1978, Multinational companies began establishing businesses in China. The outward flow of Chinese investments began only in the early 1980s. It began with huge state-owned Chinese firms setting up businesses in other countries with the sole aim of developing ties with other countries and putting China on the international map. Profit was not the main motive initially... CHINESE INVESTMENTS IN ASIA The ASEAN countries had, until 1999, received a small part of the outward Chinese investments. Among the ASEAN countries, Thailand had been the largest recipient of overseas Chinese investments,7 as it always had cordial relations with China. Malaysia stood second, followed by Indonesia. The distribution of investments among industries was according to the location advantage and resources available in the host country... FUTURE OF CHINESE FDIs Overseas investments by Chinese companies were not on as large a scale as that by the European or US companies, but China started investing overseas only in the 1980s. During this span of about 20 years, there were 2,400 overseas investment enterprises. Though the investments were spread over nearly 160 countries, they were concentrated largely in the USA,Australia and Canada because of a better investment climate and a better developed market... |
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