Publications of Wong MNC Center Staff, Advisory Board Members, and Research Fellows

The Growth Impact of Chinese Direct Investment on Host Developing Countries

Xiaolan Fu, Peter J. Buckley, and Xiaoqing Maggie Fu

The growth impact of Chinese outward foreign direct investment (FDI) on host countries and how it differs from Western outward FDI (OFDI) are focus of this article. Using a cross-country dataset for 52 countries and comparing United States (US) and Chinese OFDI (COFDI), the article contemplates the unique features of COFDI—e.g., weak ownership advantages and strong state support—and their impact on host country growth through various transmission channels.

China’s intellectual property rights provocation: A political economy view

Shaomin Li and Ilan Alon

Regarding the wellspring of intellectual property rights (IPR) violations in China, there are two competing perspectives, natural evolution and the rule of law. Both perspectives fail to take into account the impact that China’s party-state has on IPR protection. Adopting a political economy perspective, this article emphasizes the Chinese Communist Party (CCP)’s desire to preserve its monopoly of power and contends China has benefited from a rule through law mechanism, which creates unfair advantages for its companies, which are often government controlled.

China’s response to threats to its overseas economic interests: Softening non-interference and cultivating hegemony

Yizheng Zou and Lee Jones

The overseas economic interests of Chinese firms have grown exponentially since 2000. Their interests are often threatened by poorly regulated investment practices and political risks in unstable host countries. This article aims to explore these risks to Chinese outward foreign direct investment (FDI) and how China is adapting to respond to them. A case study of Myanmar shows China has employed a dual strategy to deal with risks to its outward FDI (OFDI). On the one hand, it has softened its non-interference principle.

Economics and Security

Naoyuki Haraoka

In a piece published before the explosion of Covid-19 around the world (“Economics and Security,” Japan SPOTLIGHT, March/April 2020, pp. 4-5), Mr. Naoyuki Haraoka, Executive Managing Director of the Japan Economic Foundation and long-time Advisory Board member of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations, noted international political challenges and political tensions inside countries (e.g., anti-globalization movements) already presented serious challenges to future global economic growth.

Problematic Prognostications about China’s Maritime Silk Road Initiative (MSRI): Lessons from Africa and the Middle East

Jean-Marc F. Blanchard

The raging debate about China’s mega Maritime Silk Road Initiative (MSRI) falls into two extreme camps, those that forecast earthshattering effects and those, focused on the MSRI’s numerous contemporary challenges, that see China’s scheme as stagnating or failing. This study plunges into the debate by conducting a macro- and micro-level analysis of the MSRI. The macro-level analysis indicates that the MSRI is not having transformative economic effects.

The Investment War with China, Part II: Assessing American Pressure

Jean-Marc F. Blanchard

This publication is part II of a three-part series examining the United States (US) investment war against China. It focuses on the US war against Chinese outward foreign direct investment (OFDI), particularly US actions to limit Chinese OFDI in the US, US measures to undercut COFDI in other countries, and Washington’s efforts to undermine China’s Belt and Road Initiative (BRI). It provides background on US legal, regulatory, policy, and rhetorical measures, among others, in these areas, and describes the factors motivating US policy.

The Investment War with China, Part I

Jean-Marc F. Blanchard

This piece is part I of a three-piece series examining the United States (US) investment war against China, which consists of three aspects: constraining American foreign direct investment (FDI) flows into China, hindering Chinese outward FDI (OFDI), and action against Chinese companies listed or contemplating listings on US stock markets. This Op-Ed considers the political and economic benefits as well as costs of taking action to delist Chinese stocks.

Chinese companies conquering the world: A descriptive analysis of the rapid rise of Chinese acquisitions

Lourdes Casanova and Anne Miroux

This piece focuses on the global acquisition patterns of Chinese companies, examining its geographic and sectoral orientations. It also delves into the drivers of Chinese outward foreign direct investment (FDI) before and after the 2008 Great Financial Crisis. Using data from various sources such as the United Nations Conference on Trade and Development and Financial Times fDi Markets, the analyze finds that mergers and acquisitions (M&A) play a critical role in the internationalization of Chinese companies.

Brazil’s Samba with China

Jean-Marc F. Blanchard

There are many who expect China’s rising foreign direct investment (FDI) in, exports to, and economic collaboration with Latin American countries will drive such countries to adopt foreign and domestic politics friendly to China as well as China-favored policies. This article tests the power of such arguments by examining the impact of Chinese outward FDI (OFDI) in Brazil, Brazil’s trade with China, and Chinese loans to Brazil on Brazil’s China policy. It finds that broad and deep economic ties indeed have pushed Brazil in the direction of China.

The Politics of Latin America’s Investment and Other Links with China

Jean-Marc F. Blanchard

There are three positions about the impact of outward foreign direct investment (FDI) from China on the policies of Latin American and Caribbean (LAC) countries: the “Wealth is Power” camp, which associates political power with Chinese economic lures; the “Conditionalist” camp, which contends the international and domestic economic and political context determines the specific political effect of Chinese outward FDI (OFDI); and the “Politics is Power” camp, which believes no dramatic political changes have resulted from the economic stimuli of Chinese OFDI (COFDI) and associated economic lu

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