Foreign Equity Joint Ventures in China: Interactions between Government Policies and Multinational Investment Strategies

Danny Bulcke and Haiyan Zhang

Chapter 8 in International Trade, Foreign Direct Investment and the Economic Environment, 1998, pp 135-159 from Palgrave Macmillan

Abstract: Abstract The growing interdependence between national economies and the worldwide globalization of business activities during the last two decades have created serious limits to the self-sufficient economic development options of individual countries. While the proportion of the national economy which is subject to foreign influence has grown for most nations, external policy considerations have become increasingly important in national economic development programmes (Stopford and Strange, 1991). This is especially true for an emerging market economy such as China. The frequent adaptations of Chinese foreign direct investment (FDI) policy since the end of the 1970s and the growing importance of multinational enterprises (MNEs) in the Chinese economy provide an interesting example of the dynamic interaction between national policy measures and MNE strategies against the background of the globalization of the world economy.

Keywords: Foreign Direct Investment; Host Country; Labour Intensive Industry; Capital Intensive Industry; Foreign Equity (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-14030-5_8

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DOI: 10.1007/978-1-349-14030-5_8

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