Over the past three decades, MNCs have benefited substantially from investing in China. As the economy has matured in recent years, the role of foreign direct investment (FDI) and how it is viewed both by Chinese policymakers and MNCs have also evolved.
Re-thinking FDI in China explores these evolving trends and what they mean for domestic Chinese enterprises and MNCs. While it no longer makes sense for companies in some sectors to invest in China to minimise costs, China is increasingly becoming an attractive place to invest in R&D and product development.
However, China’s dynamic and highly competitive market poses distinct challenges for internal operations. Additionally, partnerships between Chinese companies and MNCs must also navigate evolving rules for outbound investment into third country markets.
This edition will introduce some of the ways that domestic enterprises and MNCs can look beyond traditional FDI approaches, using innovative investment models to thrive in the world’s second largest economy and capitalise on the opportunities of the Belt and Road Initiative.