Foreign Direct Investment in China: Performance, Characteristics, and Prospects

    Research output: Chapter in Book/Report/Conference proceedingChapter


    Large foreign direct investment (FDI) inflow is one of the most important features of China's economic reform and opening up to the outside world. Over the past 30 years, China has attracted over US$940 billion FDI inflows, making it the largest FDI recipient among the all developing countries. This chapter argues that FDI inflows into China have mostly come from developing economies, concentrated in China's east and southeast coastal regions, and biased toward the manufacturing sector. The large FDI inflows have greatly contributed to China's economic development. FDI has been playing an increasingly important role in China's economy in terms of capital formation, employment creation, export promotion, and integrating with the world economy. The global financial and economic crisis has had negative impact on FDI inflows into China. However, as compared to the large decline in FDI globally, FDI inflows into China have been resilient. China will continue to be one of the most attractive destinations for FDI in the future.
    Original languageEnglish
    Title of host publicationFrontiers of economics and globalization volume 9: The evolving role of Asia in global finance
    Editors Yin-Wong Cheung, Vikas Kakkar and Guonan Ma
    Place of PublicationBingley UK
    PublisherEmerald Group Publishing Ltd
    ISBN (Print)9780857247452
    Publication statusPublished - 2011


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