Outward Foreign Direct Investment from China and Its Policy Context

Since 2000, China's outward foreign direct investment has grown rapidly due to the government strongly encouraging Chinese enterprises to "go global". Thus far, the bulk of the investment has gone into the primary and tertiary sectors, with relatively little going into manufacturing. Most investments are concentrated in Asia, but they are now spreading throughout the world. Much of it passes through tax havens. The government has been slow to tackle administrative obstacles facing Chinese companies wishing to invest abroad. However, the global financial crisis has presented opportunities for Chinese multinationals to raise their stake in the world economy.