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

“Why Unsustainable Chinese Infrastructure Deals Are a Two-Way Street.”

Matt Ferchen and Anarkalee Perera

Warnings about China’s debt-trap policy, pursuant to which it allegedly signs unsustainable deals with countries involved in its Belt and Road Initiative to obtain assets, became prevalent after 2018 following the Sri Lanka’s Hambantota Port fiasco. This narrative assumes China has a strategic plan when the reality may be far more complex.

“Building a market economy through WTO-inspired reform of state-owned enterprises in China.”

Weihuan Zhou, Henry Gao, and Xue Bai

Regarding Chinese state capitalism, which seems to be strengthening with state-owned enterprise reform, there is a prevalent view that existing rules under the World Trade Organization (WTO) framework are inadequate for addressing it. This article questions the validity of this perspective through a careful examination of WTO agreements and jurisprudence. It specifically contends that countries can exploit current WTO rules pertaining to subsidies and China-specific obligations to tackle issues stemming from China’s state capitalism.

"Beware of Chinese bearing gifts: Why Chinese Direct Investment Poses Political Challenge in Europe and the United States"

Sophie Meunier

Chinese outward foreign direct investment (FDI) in the European Union (EU) and United States (US) has soared, provoking many anxieties about its effects and, in some cases, a backlash. Two factors explain the intensification of concern. One is that Chinese outward FDI (OFDI) is relatively new. The other is that Chinese OFDI (COFDI) is from China, resultingly unique, and therefore deserves special treatment.

Chinese outward foreign direct investment (COFDI): A primer and assessment of the state of COFDI research

Jean-Marc F. Blanchard

This chapter, entitled "Chinese outward foreign direct investment (COFDI): A primer and assessment of the state of COFDI research," provides an overview of Chinese outward foreign direct investment (COFDI). In this vein, it reviews the evolution of COFDI from the late 1970s through the present and contemplates the potential implications of China’s Belt and Road Initiative.

“China and the “Belt and Road Initiative” (BRI): Contested multilateralism and innovative institution-building"

Wei Liang

What drives China’s Belt and Road Initiative (BRI)? Why did China decide to create new ‘parallel’ multilateral institutions instead of utilizing existing ones to pursue its objectives? This chapter provides a qualitative assessment of China’s multifaceted influence as donor, financer and investor, and more importantly, a new institution designer in BRI countries. By examining China’s Belt and Road Initiative, I argue that China might be challenging aspects of US dominance or preferences in some cases, but is still supportive of the neoliberal international order.

“Chinese Direct Investment in Europe: Economic Opportunities and Political Challenges”

Sophie Meunier

Over the past decade, China has become one of the largest senders of foreign direct investment (FDI) in the world, including in the European Union (EU). Why did this rapid surge happen and how did European countries react politically to this new phenomenon, which some have presented as unprecedented and even dangerous? After surveying the recent evolution of Chinese FDI in Europe, this chapter analyzes the match between Chinese demand for European assets and European supply of assets after the outbreak of the euro crisis.

East Asian Integration: Goods, Services and Investment

Lili Yan Ing, Martin Richardson, and Shujiro Urata

The growth of world trade has been stagnant in recent times; trade liberalization now has been challenged. The recent rise of anti-globalization calls for a better integration in East Asia. How should East Asia manage its openness? This book provides profound analyses on rules of origins, non-tariff measures, restrictiveness in services, and investment. It gives insight into how East Asian countries should shape trade, investment, and industrial policies to create better integration.

China's Belt and Road Initiative: Changing the Rules of Globalization

Ilan Alon, Wenxian Zhang, and Cristoph Lattemann

Since the introduction of the Belt and Road initiative (BRI), first proposed in late 2013, international scholars have begun to study this new policy and its implications in the global age. While the BRI provides new opportunities for China in terms of regional cooperation and global development, many also raise concerns about China’s intentions of using economic means to achieve strategic and foreign policy objectives.

Emerging multinationals from China and Latin America: a comparative analysis

Lourdes Casanova et al.

Latin American countries were pioneers in developing economies’ outward foreign direct investment (OFDI) activities. Since late 1960s and early 1970s, Latin American countries, mainly Argentina and Brazil, led the first wave of OFDI from developing economies. Though they lost ground during the 1980s debt crisis, Latin American OFDI has been catching up since late 1990s. In contrast, China’s participation in OFDI started much later, mainly after the year 2000, but accelerated quickly after 2008.

The Development of China's Maritime Silk Road Initiative in South Asia & it Implication for Business & Government

Jean-Marc F. Blanchard

This piece discusses the general features as well as economic and political goals of China's Belt and Road Initiative (BRI) and the associated Maritime Silk Road Initiative (MSRI), with a special focus on the MSRI in South Asia, a key MSRI region. It also identifies a number of economic factors at the country level, and with respect to China-e.g., high debt levels for some South Asian participants and and Chinese limits on outward foreign direct investment (FDI)-that will affect the realization of the MSRI.