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

The Investment War with China, part III: U.S. investment in China

Jean-Marc F. Blanchard

This article is the final part in a three-part series examining the United States (US) investment war with China and focuses on Washington’s war against US foreign direct investment (FDI) in China. It first details the forms of the US war, which include negative rhetoric about US FDI in China, the US-China trade war, and efforts to encourage companies to return to the US. It then considers the political and economic costs and benefits of these diverse tactics, showing that the calculus rarely is straightforward.

Monitor of Chinese OFDI in Latin America and the Caribbean in 2020

Enrique Dussel Peters

This publication provides detailed statistics about Chinese outward foreign direct investment (FDI) in Latin America and the Caribbean (LAC) from 2000-2019, with a focus on recent years. Among other things, it tracks Chinese outward FDI (OFDI) volumes, the geographic and sectoral distribution of Chinese OFDI (COFDI), and COFDI entry modes. The report identifies three main COFDI trends. First, COFDI flows are declining.

Emerging Market Multinationals and Europe: Challenges and Strategies

Andreas Breinbauer, Louis Brennan, Johannes Jager, Andreas Nachbagauer, and Andreas Nölke

The expansion of emerging market multinationals, exemplified by the expansion of Chinese multinationals to Europe and the Belt and Road Initiative (BRI), has created public concerns about its long-term implication. This book aims to address these concerns and offer fresh insights into this controversial topic. It analyzes the special features of emerging market multinational corporations (MNCs), decision making in emerging market MNCs (EMMNCs), cross-border acquisitions of EMMNCs, Chinese investments in Europe and along the BRI, and EMMNCs from Latin America, Russia, and Turkey.

Tracing the Legacy: China's Historical Aid and Contemporary Investment in Africa

Pippa Morgan and Yu Zheng

This article gives primacy to the effect of sociohistorical factors on foreign direct investment (FDI). A case study examining links between Chinese foreign aid to Africa from 1956 to 1999 and contemporary Chinese FDI there reveals a significant and positive connection between past foreign aid and contemporary FDI. The logic behind this pattern is that past foreign aid created social capital in host countries that generates specific resources for contemporary foreign investors, increasing their interest in host countries where social capital has accumulated.

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.

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