CHINA AND FOREIGN INVESTORS. THE END OF A BEAUTIFUL FRIENDSHIP?
Françoise Nicolas
Asie.Visions (IFRI), No. 4, April 2008
Major concerns have been expressed lately as to the risk of a rise in economic nationalism in China. Two categories of developments are usually cited as symptoms of such nationalism. The first category has to do with Government’s initiatives to aggressively push the country’s interests, either through the promotion of Chinese national champions or through the encouragement of Chinese investments abroad. Such moves are exemplified by the so-called strategic approach to energy security for instance, as well as by the “go global” campaign which encourages both state-owned enterprises and smaller private and collective enterprises to invest abroad. The decision to set up a sovereign wealth fund (China Investment Corporation) along the lines of the Singapore Government Investment Corporation may be seen as another facet of this strategy of state-led expansion.
The second category relates to the alleged change in China’s stance towards foreign investors. Rising signs of hostility towards foreign investors, and more generally towards foreign products (campaign against food products for instance) tend to substantiate the view that China is increasingly reluctant to let foreigners dominate some sectors of the economy and that it is seeking as a result to reduce its dependence vis-à-vis foreign investors. In this respect a major issue pertains to the recent revision of the Catalogue for Guidance of Foreign Investment Industries which is thought by some to reflect a turnaround in China’s approach towards inward direct investment.
These two sets of policies both aim at boosting China's overall involvement in the global economy. The present paper will address the second issue while a companion paper will address the former.
[página web aquí]
Françoise Nicolas
Asie.Visions (IFRI), No. 4, April 2008
Major concerns have been expressed lately as to the risk of a rise in economic nationalism in China. Two categories of developments are usually cited as symptoms of such nationalism. The first category has to do with Government’s initiatives to aggressively push the country’s interests, either through the promotion of Chinese national champions or through the encouragement of Chinese investments abroad. Such moves are exemplified by the so-called strategic approach to energy security for instance, as well as by the “go global” campaign which encourages both state-owned enterprises and smaller private and collective enterprises to invest abroad. The decision to set up a sovereign wealth fund (China Investment Corporation) along the lines of the Singapore Government Investment Corporation may be seen as another facet of this strategy of state-led expansion.
The second category relates to the alleged change in China’s stance towards foreign investors. Rising signs of hostility towards foreign investors, and more generally towards foreign products (campaign against food products for instance) tend to substantiate the view that China is increasingly reluctant to let foreigners dominate some sectors of the economy and that it is seeking as a result to reduce its dependence vis-à-vis foreign investors. In this respect a major issue pertains to the recent revision of the Catalogue for Guidance of Foreign Investment Industries which is thought by some to reflect a turnaround in China’s approach towards inward direct investment.
These two sets of policies both aim at boosting China's overall involvement in the global economy. The present paper will address the second issue while a companion paper will address the former.
[página web aquí]
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