Advanced Search
MyIDEAS: Login

Chinese Odi In France: Motives, Strategies, And Implications

Contents:

Author Info

  • FRANÇOISE NICOLAS

    ()
    (Center for Asian Studies, French Institute of International Relations, 27 rue de la Procession, 75740 Paris Cedex 15, France; Paris-Est University, 5 Boulevard Descartes, Champs-sur-Marne, 77454 Marne-la-Vallée Cedex 2, France)

Registered author(s):

    Abstract

    Although outward direct investment (ODI) is still very much a developed country phenomenon (with industrial countries accounting for more than 75% of global flows), ODI from the "South" is gaining ground, with China ranking among the most active outward investors, together with, but well ahead of, India and Brazil. Today, although the bulk of Chinese investment abroad is still directed to neighboring Asian economies and to natural resource–rich African countries, a sizeable share of these outward investments is targeted at industrial economies, namely the US and the EU, raising concerns of a "Chinese challenge." Taking France as a case study, the paper seeks to determine whether these concerns are well or ill founded and the implications of this new state of play. The paper starts with an overview of Chinese ODI in France, with regards to function, sector, and mode of entry in particular. As a next step, it examines in detail the push and pull factors influencing Chinese investors' activities and assesses their performances as well as the possible impacts of their presence for the host as well as for the home economy. The paper shows that the concerns expressed about the presence of Chinese investors are wholly misplaced so far for a number of reasons. First, Chinese ODI is still extremely limited; second, Chinese investors can be shown to behave exactly like any other foreign investors, with market-seeking objectives prevailing over strategic asset-seeking motivations. Third, Chinese ODI may lead to win-win situations. In particular, French firms can be shown to be in a position to benefit from Chinese ODI either by discharging underperforming assets or by getting an access to the Chinese market. Finally, the paper examines France's alleged underperformance in terms of attractiveness to Chinese investors. It suggests that the apparent "French exception" should not be exaggerated and that it can be easily explained. However, country-specific characteristics may contribute to deter Chinese investors and need to be taken into account. In terms of policy recommendations, preserving the country's openness to foreign investment should stay on top of the priority list.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S1793969012500069
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S1793969012500069
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal China Economic Policy Review.

    Volume (Year): 01 (2012)
    Issue (Month): 01 ()
    Pages: 1250006-1-1250006-30

    as in new window
    Handle: RePEc:wsi:ceprxx:v:01:y:2012:i:01:p:1250006-1-1250006-30

    Contact details of provider:
    Web page: http://www.worldscinet.com/cepr/cepr.shtml

    Order Information:
    Email:

    Related research

    Keywords: Outward direct investment; market-seeking; technology-seeking; China;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wsi:ceprxx:v:01:y:2012:i:01:p:1250006-1-1250006-30. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.