China’s FDIs in Asia
|
Code : ITF0002
|
Region : :China |
||||
 |
 |
 |
 OR |
||
|
Introduction: China has been the recipient of huge overseas investments since 1992, with many major Multinational companies setting up a base there. In 2003 alone, China received close to $57 billion of Foreign Direct Investment (FDI).Availability of lowcost labour, a huge domestic market and excellent infrastructure led to such huge FDI inflows.According to 2003White Paper on International Trade and Investment released by the Japan External Trade Organisation (JETRO),2 the FDI influx into China was the highest in the world exceeding even that of United States’. China’s export volume was also the fourth highest in the world. While there was a huge inflow of investment into China, there was also a small but fast growing outflow of investment from the country. Chinese state-owned and private firms saw a lot of benefit in investments abroad and hence began investing overseas. Many Asian countries like Malaysia, Indonesia and Singapore, began to feel that China was grabbing up a major part of FDIs coming into Asia. But when China began to look overseas, these countriesmade a beeline to attract as many Chinese companies as possible. In 2003, Thailand’s Board of Investment, the Government body that encouraged foreign investments, opened a branch in Shanghai to encourage Chinese investors to invest in their country. Lower labour costs in countries like Vietnam and a more liberal investment regime, resulted in Chinese firms setting up bases in manyAsian countries. |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
