supply chain resilience

China’s FDI Flight Fantasies and Avoiding Corresponding Follies

The sky for foreign direct investment (FDI) in the People’s Republic of China (PRC/China) is falling per a slew of recent news articles. The evidence? A large percentage of China inward FDI (IFDI) is from Hong Kong and a notable percentage of this money is “round tripping” (i.e., money flowing from the PRC through Hong Kong and then back to the PRC). In addition, more companies are shifting operations to other destinations.

MNCs in the News-2022-January

China’s Ministry of Commerce (MOFCOM) touts that China will act to attract foreign direct investment (FDI) despite a challenging environment. In the wake of a backlash following its removal of Xinjiang products from its shelves, Guangdong Administration for Market Regulation fines Sam’s Club for deceptive consumer practices on its app. Beijing municipal government fines 7-Eleven China for the latter’s website maps that have problematic presentations of Taiwan and other territory. China’s work and the presence of dredgers at Cambodia’s Ream naval base concern the United States and others that China’s seeks to station military assets there. Indian tax authority probe causes it to demand Xiaomi India pay unpaid customs duties. Sri Lanka asks China for debt relief on loans used to pay for Belt and Road Initiative projects. Ruling parties from Japan and Taiwan agree to pursue cooperation on semiconductors to alleviate semiconductor shortages and address the China high-tech challenge. Japanese companies remain committed to Myanmar despite the latter’s serious political, economic, and other problems. The chair of Korea’s Fair Trade Commission (KFTC) promises to continue to improve the KFTC’s regulation while supporting innovation. Apple submits plan to Korea Communications Commission that allows alternative in-app payment systems and reduces payment fees.

Executive Director Jean-Marc F. Blanchard interviewed for TI Observer article about US-China Economic Relations

Dr. Jean-Marc F. Blanchard, Founding Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, was interviewed for a Taihe Institute TI Observer article about China-United States (US) economic relations with a focus on foreign direct investment (FDI). Dr.

Executive Director Jean-Marc F. Blanchard interviewed for The Diplomat article about US-China Foreign Direct Investment Dynamics

Dr. Jean-Marc F. Blanchard, Founding Executive Director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, was interviewed for an article in the The Diplomat. Dr. Blanchard offered his thoughts about the state of China-United States (US) foreign direct investment (FDI) and how various dynamics in China and the US and between the two countries might affect FDI going forward.

Dr. Jean-Marc F. Blanchard's picture

Circling around China’s Dual Circulation Policy, part III-Implications for China’s Outward FDI

Dr. Jean-Marc F. Blanchard
Posted: Feb 14, 2021

This piece complements two earlier pieces that, respectively, overviewed China’s Dual Circulation System (DSC) and pondered its implications for inward foreign direct investment (FDI) into China. It specifically focuses on the potential ramifications of the DCS for Chinese outward FDI (OFDI). Prima facie one logically might expect the DCS to moderate Chinese OFDI since its goals include inter alia enhancing China’s indigenous capabilities, insulating China from an occasionally hostile external environment, and increasing domestic consumption and production. In actuality, though, these and other DCS aims do not support the premise the DCS will result in Chinese money shunning the outside world.