What types of Chinese ODI activities are most prone to political intervention

Abstract

This chapter studies Chinese ODI activities that encounter political obstacles in host countries. Above all, two concepts should be clarified. First, what does it mean to ‘encounter obstacles’? In this study, it means Chinese enterprises that have failed to complete their ODI projects for various reasons and it does not cover those that have completed their investment projects (even if their investment has proved a failure or incurred losses). Second, what are the ‘political factors’ in host countries? These are factors related to the activities of the host country government that can influence foreign investors, including national security reviews, changes of government, policy changes, nationalisation and government default.