Foreign Direct Investment (FDI) Inflows and Outflows in Today’s China
China now reigns as the world’s largest destination for FDI, overtaking the United States for the first time in history. The nation is not only a magnet for FDI but also an important source of this type of investment. Until recently, SOEs were China’s main outward investors. In fact, the first generation of Chinese multinational companies were mainly large SOEs, operating in what used to be tightly regulated, monopolized industries such as international trading, natural resources, financial services, and shipping. The second generation of large Chinese international enterprises emerged in the early to mid-1990s in very competitive manufacturing industries, especially the electronics, ...
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