Chinese Investments in Advanced Economies

• In Event: New Patterns in Foreign Direct Investment

Abstract

How do advanced economies respond to Chinese investments? These countries face competing incentives. On the one hand, China’s outward foreign direct investment (FDI) faces increased scrutiny abroad due to its sharp increase, state backing, and the competition it poses to local corporations. On the other hand, Chinese financial flows provide needed investments in developed economies, particularly in manufacturing and infrastructure. The goal of this paper is to understand how policy-makers address these competing incentives by studying variations in FDI regulations across national contexts and over time as a response to Chinese investments. The paper uses data on inward FDI legislation, legislative discussions, and interviews with policy-makers to map responses to Chinese FDI in the United States, United Kingdom, France, and Germany.

Author

• Jazmin Sierra, University of Notre Dame