The management of Chinese foreign direct investment

Date
2011-03
Authors
Van Der Lugt, Sanne
Journal Title
Journal ISSN
Volume Title
Publisher
Centre for Chinese Studies, Stellenbosch University
Abstract
China is becoming an important source country for foreign direct investment (FDI) for many African countries, catching up fast with the historical main FDI source countries to Africa, such as the United States, the United Kingdom or France. One of the charms of China to African policy makers in the last years was a change of discourse, shifting from ‘challenges in development’ to ‘opportunities in doing business’ in Africa. Popular claims link the inflow of FDI almost automatically to economic development. This paper looks into framework conditions for investment, assuming that they matter strongly for investment to become beneficial for development. In order to better regulate, conditions in the host country have to be considered. Additionally, the investment promo-tion policies and institutions of the home country to investment – China in this case – need to be understood in order to engage with the right actors in the ‘sending’ country.
Description
CCS Policy Briefings are drawn from the published reports and other material produced by the Centre. They aim to highlight specific recommendations and outcomes from the larger reports and present them in a concise, easily consumable format.
The original publication is available at http://www.sun.ac.za/ccs
Keywords
China -- Investments -- Africa, Ministry of Commerce (MOFCOM), United Kingdom, United States, France, Foreign direct investment -- China, Africa -- Trade -- China, Commerce -- Africa, Business -- Africa, South-South Cooperation, Investment, Development assistance, Aid -- Africa, Centre for Chinese Studies
Citation
Van Der Lugt, Sanne. 2011. The Management of Chinese Foreign Direct Investment. CCS Policy Briefing - March 2011. Stellenbosch University: Centre for Chinese Studies