William X. Wei

Chinese outward direct investment: a study on macroeconomic determinants

On the basis of Dunnings Investment Development Path (IDP) hypothesis, this paper tests the macroeconomic determinants of Chinese Offshore Direct Investment (ODI) from a home-country perspective. We review the recent firm- and country-level studies on determinants of Chinese ODI. We propose a model and test seven home-country macroeconomic variables as determinants of Chinese ODI. Our results reveal that the macroeconomic variables such as interest rate, exchange rate, import and foreign reserve are important determinants of Chinese outward Foreign Direct Investment (FDI).

Strategic Entry and Determinants of Chinese Private Enterprises Into Africa

The authors discuss the strategic entry of Chinese private enterprises (PEs) into Africa by analyzing their characteristics of host distribution and overseas companies’ function and type. They find that Chinese PEs tend to invest in countries where Chinese investment has already concentrated, that more Chinese PEs engage in manufacturing and services than in agriculture and mining and quarrying, and that Chinese PEs take higher risks by choosing the type of subsidiary companies to enter Africa. They also make an empirical study of the determinants of Chinese PEs compared with state-owned enterprises in the period 2002–2011 and found Chinese PEs in Africa are driven mainly by the motivation of market-seeking, not by resource-seeking; Chinas imports from the host country also facilitate Chinese companies’ investment in Africa; and Chinese companies in Africa are risk-takers. At the end of the article, they study the case of Touchroad and verify the results of their empirical study.

Benelli and QJ Compete in the International Motorbike Arena

Marta, the young Chinese Managing Director, was sitting in her office in Pesaro contemplating the purchase of the Italian bike manufacturer Benelli. QJ had purchased Benelli in 2005. After the Chinese beat out the Russians in a bid to acquire the company, QJ was off to a very good start: the local authorities helped to create a welcoming environment, the two production lines were operational, new motorbikes were being projected by skilled engineers, and the new scooters were so attractive!

Managing Political Risks of Chinese Contracted Projects in Libya

The contracted project is the basic form of Sino-Libyan economic cooperation. The authors hope that Chinese constructors will learn from this case study. This article assesses the political risk for Chinese contracted projects at three levels and studies their countermeasures to this emergency and the effects of political risks on Chinese constructors in Libya. The research finds that Chinese constructors are not good at political risk management due to their traditional attitudes toward risk and the attitudes of the Chinese government toward overseas losses of Chinese state-owned enterprises (SOEs). However, Chinese SOEs are more experienced than private-owned enterprises in dealing with emergencies.

Home Country Macroeconomic Determinants of Chinese OFDI

Compared with foreign direct investment (FDI) inflows, Chinese outward foreign direct investment (OFDI) used to be quite small. According to UN statistics, China’s FDI inflow-outflow ratio was 6.4:1 in 2005 (Cheung & Qian, 2008). However, Chinese investment abroad has increased dramatically since 2007. In 2008, Chinese OFDI outflow reached US

The United States direct investment and intra-industry trade with Japan, the Four Tigers and China

52.1 billion, which equals China’s 2003 FDI inflow. In 2009, Chinese OFDI outflow was US

Survival strategy of OEM companies: a case study of the Chinese toy industry

48 billion, more than double 2007’s outflow (US

Cosmopolitan cultural identities and management practice: challenges of Chinese returnees

22.5 billion) (UNCTAD, 2010). In 2010, it reached

Special Issue: Chinese Trade and Investment in Africa

57.9 billion. According to recent statistics from the Department of Outward Investment and Economic Cooperation of the Ministry of Commerce in the People’s Republic of China, US

A Preliminary Forecast of the Production Status of China’s Daqing Oil field from the Perspective of EROI

255.4 billion has been designated for non-financial direct investment by Chinese investors to more than 15,000 enterprises in 174 countries and regions by the end of 2010.