International Political Economy of Chinese Outward Foreign Direct Investment

This book centers on political economy behind the internationalization of Chinese multinational enterprises (MNEs). Special attention was given to the role of political-sided considerations and state policies in their and investment strategies during a “stable period” (2006 to 2017) when Chinese Outward Foreign Direct Investment (OFDI) witnessed substantial growth meanwhile the entire world was relatively friendly towards Chinese MNEs. The author uses scientific methods to develop Country Political Risk Index (CPRI)—the first composite index that captures how Chinese MNEs perceive political risk in host countries when making investment decisions, applies it to China Global Investment Tracker (CGIT) dataset and interprets the reasons behind the political risk distribution of Chinese OFDI from the standpoint of China’s holistic approach to national security. Offering by a young scholar with practical experience in business consultancy and M&A projects, this book can help researchers, diplomats and business people better understand how China’s FDI-related policies empowered Chinese MNEs to venture overseas and emboldened them in the face of unstable investment environments.