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Foreign Equity Joint Ventures in China: Interactions between Government Policies and Multinational Investment Strategies

In: International Trade, Foreign Direct Investment and the Economic Environment

Author

Listed:
  • Danny Bulcke
  • Haiyan Zhang

Abstract

The growing interdependence between national economies and the worldwide globalization of business activities during the last two decades have created serious limits to the self-sufficient economic development options of individual countries. While the proportion of the national economy which is subject to foreign influence has grown for most nations, external policy considerations have become increasingly important in national economic development programmes (Stopford and Strange, 1991). This is especially true for an emerging market economy such as China. The frequent adaptations of Chinese foreign direct investment (FDI) policy since the end of the 1970s and the growing importance of multinational enterprises (MNEs) in the Chinese economy provide an interesting example of the dynamic interaction between national policy measures and MNE strategies against the background of the globalization of the world economy.

Suggested Citation

  • Danny Bulcke & Haiyan Zhang, 1998. "Foreign Equity Joint Ventures in China: Interactions between Government Policies and Multinational Investment Strategies," Palgrave Macmillan Books, in: P. K. M. Tharakan & D. Bulcke (ed.), International Trade, Foreign Direct Investment and the Economic Environment, chapter 8, pages 135-159, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-14030-5_8
    DOI: 10.1007/978-1-349-14030-5_8
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