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China's International Capital Flow and its Impact for Asian Countries on the Background of Industrial Transition and Upgrading

Author

Listed:
  • Zhou, Minghai

    (School of Economics, University of Nottingham Ningbo)

  • Yao, Xianguo

    (Institute for Public Policy, Zhejiang University)

Abstract

In 2012, China emerged as the third largest foreign direct investor in the world. This represented a continuation of the recent dramatic increase in the China’s outward foreign investment flows. China’s outward foreign direct investment (FDI) is driven by state-owned enterprises eager for strategic assets and natural resources, and by privately owned enterprises seeking to relieve pressure from rising domestic labor costs. Asian countries are the largest recipients of the Chinese FDI, with 61% of the Chinese outward FDI flows in 2011 remaining within Asia. While the increase in the Chinese FDI provides important opportunities for developing countries, bilateral and multilateral negotiations are needed to address issues such as market access and host countries’ concerns about unfair competition and national security.

Suggested Citation

  • Zhou, Minghai & Yao, Xianguo, 2014. "China's International Capital Flow and its Impact for Asian Countries on the Background of Industrial Transition and Upgrading," RIEI Working Papers 2014-04, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    • Handle: RePEc:xjt:rieiwp:2014-04
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    outward foreign direct investment; strategic assets and resources; labor costs;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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