China’s Outward Foreign Direct Investment

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Table of Contents
Foreword 1
History of China’s Outward FDI 1
Changes in Policy and its Effects on OFDI 1
Stage 1: “Cautious internationalization” (1979-1985). 2
Stage 2: “Government encouragement” (1986-1991). 2
Stage 3: “Expansion and regulation” (1992-1998). 2
Stage 4: “Implementation of the 'go global' policy” (1999-2001) 2
Stage 5: Post-WTO period (2001- present) 2
Exhibit #1 3
Geographical and Sectoral Distribution of Chinese OFDI 3
Investing Actors 4
China’s influence in Central Asia 4
President’s visit 4
The economic dimension 5
China gathers up Central Asian gas, and reverses the directions of oil export 5
China – Africa Relationship 7
The Development Path of China’s OFDI to Africa 7
Exhibit #2 8
Regional Distribution 8
Exhibit #3 9
Policies Encouraging Investment to Africa 9
Conclusion: The Potential for Future Growth 9
References 10

Foreword
The net of global relationships that connects the major nations of the world is undergoing a number of rapid and fundamental changes. One of the most powerful of these changes is the way in which outward foreign direct investments (OFDI) are circulated and used in order to influence other countries. Indeed, this paper would talk about how Central Asian and African countries were added to China’s sphere of influence through strategic foreign direct investments. First, it would start from giving general background to the Chinese OFDI and its stages of development. Then, it would focus on how through its OFDI, China is expanding its empire through countries such as Kyrgyzstan, Turkmenistan, Kazakhstan, and Uzbekistan. After that it would talk about strategic Chinese Investments in African region and how it is influencing the region. Finally, it would conclude with suggesting futur...

... middle of paper ...

...Report. Web. 5 Apr. 2014.
• Ismail Ahmed, Hibo. "China’s FDI in Africa and the Role of Institutions: A Theoretical Analysis on the Explanatory Power of Conventional FDI Theories." School of Business and Social Sciences, Aarhus University, Aug. 2013. Web. Apr. 2014.
• Sauvant, Karl, Padma Mallampally, and Geraldine McAllister. INWARD AND OUTWARD FDI COUNTRY PROFILES. New York: Vale Columbia Center on Sustainable International Investment, 2013. Print.
• Li, Jing, Daniel Shapiro, and Victor Chen. Foreign Direct Investment in Natural Resource Industries in Africa: Chinese versus Western Models. Burnaby, Canada: Beedie School of Business Simon Fraser University, 2013. Print.
• Alon, Ilan, Tanya Molodtsova, and Jian Zhang. Macroeconomic Prospects for China’s Outward FDI. Publication. 2nd ed. Vol. 4. N.p.: Rollins College Rollins Scholarship Online, 2012. Print. June 2012.

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