Objectives, Locations Partner Selections of Foreign Invested Enterprises in China

Xiaohe Zhang

Journal of the Asia Pacific Economy, 2000, vol. 5, issue 3, 190-203

Abstract: This paper attempts to identify the motivations, objectives, selection criteria for locations and partners of foreign invested enterprises (FIEs) in China and to compare the differences among investors from different source countries, by using a survey of 106 FIEs in China. It is found that the main motivations are China's huge potential market size, low labor cost and preferential government fiscal treatments. The main determinants of geographical destination are the location of the Chinese partner, better preferential policy and familiarity with the Chinese partner. The main determinants for partner selection are mutual trust between the two parties, good credit of the Chinese partner and capability to deal with local authorities. It is also found that there are no significant differences in the long-term objectives between the two distinguished groups of foreign investors (Hong Kong, Macao and Taiwan versus other multinationals from the rest of the world), though the differences exist in their short-run objectives and selection criteria for partners.

Date: 2000
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860050175017 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:5:y:2000:i:3:p:190-203

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860050175017

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().