1st Edition
From World Factory to Global Investor A Multi-perspective Analysis on China’s Outward Direct Investment
Chinese outward direct investment (ODI) is growing rapidly in recent years. As an important phenomenon in the global economy, China’s ODI deserves more thorough analysis. This book looks at China’s ODI activities from multi-perspectives. With the rebalancing of China’s own structural growth and China’s shift towards a net capital exporter, her initiatives such as "One Belt One Road (OBOR)" have brought profound implications to the traditional super-sovereign or multilateral financial and investment cooperation mechanism. As her investment destinations and investment methods become more diversified and sophisticated, this book offers unique and refreshing insight into China’s ODI activities.
The book covers the whole range of history and policy development of China’s ODI and analyses China’s ODI trends and characteristics in the recent years. It reviews China’s major policy changes after the Third Plenary Session of the 18th Central Committee of the Communist Party and how they may impact China’s ODI strategy and activities. The book addresses potential challenges and risks of rising ODI activities from practitioners’ perspective, and discusses how recipient countries may react and respond to the surge of Chinese capital. The book also offers policy implications and future research agenda in relation to the Chinese investments.
Part I: Review of Chinese Outward Direct Investment
1. Overseas Direct Investment by Chinese Enterprises: A Survey (2005–2016) (Chen Meng, Zhihua Lyu and Chunyang Jiang)
2. From ‘World Factory’ to International Capacity Cooperation: China’s Evolving Role in the Global Value Chain (Xuedong Ding)
3. China’s Economic Transition and Overseas Direct Investments (Lawrence J. Lau)
4. Challenges in GVC and ODI Development: What Can China Do?
(Jiong Gong, Xinding Yu and Zhongxiu Zhao)
5. Chinese Outward Foreign Direct Investment – An Opportunity to Revisit International Business Theory (Peter J. Buckley)
Part II: Policy Development and Implications
6. Recent Changes in China’s Outbound Investment Policies and Their Implications (Zucai Hu)
7. China Builds up Free Trade Areas to Facilitate OFDI (Xiangchen Zhang)
8. Asian Infrastructure Investment Bank (AIIB): A New Mechanism for Global Financial Cooperation (Yaobin Shi)
9. RMB Internationalization: History and Outlook (Jun Ma and Huaizhu Xie)
10. Japan’s Experience of Foreign Investment and China’s Policy Options (Wenling Chen and Guanqun Mei)
Part III: The Dynamics of Chinese ODI
11. From Active Buyers to Active Owners (Gordon Orr and David Cogman)
12. Execution is the Strategy: The key to Lenovo’s Success in IBM PC Division Acquisition (Chuanzhi Liu and Neng Liang)
13. Why Go Global? The Logic behind Investing Overseas (John Zhao)
14. The Dynamics of Chinese Outbound Investment – Challenges and Case Studies (Andrew Wood and Yu Cao)
15. Capitalizing on Opportunities and Tackling Major Legal Challenges and Risks: A Practitioner’s Perspective (Joseph C. Shenker, Chun Wei and Jordan Oreck)
Part IV: Chinese ODI in A Global Context
16. Policy Implications of FDI on Financial Sector Development (Andrew Sheng)
17. The History and Evolution of Chinese Companies Going Global: What to Expect in the Years Ahead (Yibing Wu)
18. Chinese Investment in the UK: Great Expectations? (Lord Sassoon and Giles Blackburne)
19. The "New Normal" and Its Implications for Chinese Investment in Africa (Jacko J.H. Maree and Jeremy J. Stevens)
20. The Return of Bilateralism: China, Post-Brexit Britain and Trump (Erik Berglof and Vince Cable)
Part V: Conclusion
21. Summary and Conclusions (Xuedong Ding and Chen Meng)
Biography
Xuedong Ding is Chairman and CEO of China Investment Corporation (CIC). Prior to this, he was Deputy Secretary General of the State Council and has held several positions in the Ministry of Finance, including Vice Minister and Assistant Minister. He recently published Incentives for Innovation in China: Building an Innovative Economy with Routledge in 2015.
Chen Meng is Director at China Investment Corporation (CIC), Visiting Scholar at Leeds University Business School (LUBS), UK, and University of International Business and Economics, Beijing. He previously held senior positions in venture capital businesses in China and the UK. He started his career as Lecturer in Chinese Business and Economy at LUBS. He published Multinational Banking in China: Theory and Practice with Edward Elgar in 2009.
'Over the last decade, China rapidly became a major player in global investment. In recent years, China’s Outward Direct Investment (ODI) already surpassed its inward Foreign Direct Investment (FDI). Against this background, the editors of this volume, both from China Investment Corporation, China’s sovereign wealth fund established a decade ago, assembled an impressive and diversified group of more than 30 academics, policy makers, business consultants and investment professionals from inside and outside China to contribute to a wide range of analysis on China’s ODI. The result is a timely and valuable book, which in my view will benefit those who want to understand the economic, business and investment logic of the rise of China’s ODI, to interpret related government policies, and to think about its global implications.' — Yingyi Qian, Professor and Dean, School of Economics and Management, Tsinghua University'This book provides a valuable examination of China’s emergence as a global economic powerhouse—from a global manufacturing hub to a global investor. It details, from a variety of perspectives, the shifting focus of Chinese overseas investment, including the role of state and private entities, the consequences for rebalancing of China’s domestic patterns of growth, and the experiences of a variety of Chinese firms and entrepreneurs. These are understudied areas that warrant much more attention. From World Factory to Global Investor is an important contribution. It provides a window into China today and an important dimension of its likely future economic priorities.' — Merit E Janow, Dean, School of International and Public Affairs, Professor of Practice, International Economic Law & International Affairs, Columbia University
