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While Global FDI Falls, China's Outward FDI Doubles


  • Ken Davies

    () (OECD)


In 2008, global FDI fell by around twenty percent, while China's outward FDI nearly doubled. This disparity is likely to continue in 2009 and 2010 as China invests even more overseas. This article explains the five key drivers of China's outward foreign direct investment: its need to secure natural resources to fuel rapid growth; its need for services like shipping and insurance to support the high export volumes of domestic firms; the acquisition of global brands by China's major enterprises; the loss of the monopoly position of large state-owned enterprises; and the movement of labour-intensive operations to cheaper overseas locations like Vietnam and Africa.

Suggested Citation

  • Ken Davies, 2009. "While Global FDI Falls, China's Outward FDI Doubles," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(4), pages 20-23, December.
  • Handle: RePEc:oul:tncr09:v:1:y:2009:i:4:p:20-23

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    1. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9514-3 is not listed on IDEAS
    2. Szalavetz, Andrea, 2009. "Feltörekvő transznacionális társaságok - a kínai példa a klasszikus elmélet tükrében
      [Ambitious transnational corporations - the example of China in the light of classical theory]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1125-1137.


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