Chapter 14

China’s Outbound Foreign Direct Investment

This chapter deals with the development of China’s outbound foreign direct investment (OFDI) activities over the last three decades. In addition to discussions relating to size and geographic distribution of China’s OFDI, we review the motives for Chinese companies to acquire companies abroad. Furthermore, China’s rules and regulations for outbound mergers and acquisitions (M&As) are discussed.

China has been playing an increasingly important role not only in international trade but also in international capital flows both in portfolio and foreign direct investment (FDI) forms since the 1990s. In this book, we only focus on OFDI by Chinese enterprises, even though portfolio and direct capital ...

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