Chinaâ€™s Regulatory Framework for Outward Foreign Direct Investment
China has become the worldâ€™s third largest outward investor, behind the United States and Japan. A growing body of literature suggests that Chinaâ€™s regulatory framework for outward foreign direct investment (OFDI) is a determinant of the countryâ€™s rising OFDI. This paper presents a holistic review of that framework, including some possibilities for its improvement. Overall, Chinaâ€™s framework serves two objectives : to help Chinese firms become more competitive internationally and to assist the country in its development effort. In pursuing these objectives, the regulatory framework has moved from restricting, to facilitating, to supporting, to encouraging OFDI; but there are still strong elements of administrative control that make it cumbersome. State-owned enterprises (SOEs) seem to benefit particularly from the current framework when internationalizing through FDI.
|Date of creation:||Nov 2013|
|Date of revision:|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
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