Breslin, Shaun. (2006) Foreign direct investment in the People’s Republic of China : preferences, policies and performance. Policy & Society, Vol.25 (No.1). pp. 9-38. ISSN 1449-4035

Preview

PDF WRAP_Breslin_breslinfdifinal.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (172Kb)

Abstract

In establishing an investment policy in post-Mao China, policy was designed to gain the benefits of foreign direct investment (capital inflow, job creation, export growth, and the upgrading of technology and skills) without suffering any of the perceived negative consequences. As a result policy makers have attempted to segregate the investment regime, restricting or prohibiting investment where domestic Chinese producers might be vulnerable to international competition, whilst encouraging investment to produce exports and where there is little or no domestic capacity. In the process, considerable autonomy over investment policy has been devolved to local governments, which in turn have been heavily influenced by the interests of foreign investors in shaping local investment strategies. From the mid-1990s, the policy of shielding domestic producers from competition was challenged from both external actors seeking the creation of a level playing field, and internal actors who questioned the logic of the status quo. But whilst there has been considerable liberalisation, including the extension of forms of investment and ownership not least as a result of Chinas WTO entry criteria conceptions of social stability, the potential impact of investment on such social stability, still remain crucial determinants of investment policy.

Item Type:	Journal Article
Subjects:	H Social Sciences > HC Economic History and Conditions
Divisions:	Faculty of Social Sciences > Politics and International Studies
Library of Congress Subject Headings (LCSH):	China -- Foreign economic relations
Journal or Publication Title:	Policy & Society
Publisher:	Elsevier
ISSN:	1449-4035
Date:	2006
Volume:	Vol.25
Number:	No.1
Page Range:	pp. 9-38
Status:	Peer Reviewed
Access rights to Published version:	Open Access
References:	Bachman, David. 1988. ‘Varieties of Chinese Conservatism and the Fall of Hu Yaobang’. The Journal of Northeast Asian Studies Spring: 22-46. Braunstein, Elissa. and Epstein, Gerald. 2002. ‘Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?’. Center for Economic Policy Analysis Working Paper 2002-13. New York: New School University. Breslin, Shaun. 1996. China in the 1980s: Centre-Province Relations in a Reforming Socialist State. Basingstoke: Macmillan. Breslin, Shaun. 2003. ‘Reforming China’s Embedded Socialist Compromise: China and the WTO’. Global Change 15 (3). 213-229. CECC. 2005. Congressional-Executive Commission on China Annual Report, 2005. Washington, DC: US Government Printing Office. Chan, Anita. 2001. China’s Workers under Assault: the Exploration of Labor in a Globalizing Economy. Armonk, NY: M.E. Sharpe. Cheong, Young Rok. 2003. ‘Global Capital Flows and the Position of China: Structural and Institutional Factors and their Implications. In China’s Role in Asia and the World Economy - Fostering Stability and Growth, ed., Jan Joost Teunissen, 113-175. The Hague: Forum on Debt and Development. China Daily. 2002. ‘China Enacts New Measures on Currency Control. May 28. Ding, Jianping. 1998. ‘China’s Foreign Exchange Black Market and Exchange Flight: Analysis of Exchange-Rate Policy’ The Developing Economies (37). 24–44. Fan, Gang, and Zhang, Xiaojing, 2003. ‘How Can Developing Countries Benefit from Globalization: The Case of China’. China & World Economy (6). 3-10. Fewsmith, Joseph. 2001. ‘The Political and Social Implications of China’s Accession to the WTO’. The China Quarterly (167). 573-91. Fung, K.C., Hitomi, Iizaka, and Tong, Sarah. 2002. ‘Foreign Direct Investment in China: Policy, Trend and Impact’. Hong Kong Institute of Economic and Business Strategy Working Paper No 1049. Gao, Zhanjun and Liu, Fei. 1999. ‘The Closure of GITIC: Latent Financial Risks and Government Approach’. World Economy and China, (3-4). 51-66. Goodman, David. 2004. ‘The Campaign to “Open Up the West”: National, Provincial-level and Local Perspectives’. The China Quarterly (178). 317-334. Green, Stephen. 2003. The Development of China's Stockmarket, 1984-2002: Equity Politics and Market Institutions. Basingstoke: Palgrave. Guang Zhang. 2000. ‘Governmental Policy Preferences and Foreign Capital Allocation: The Case of China’. Journal of Chinese Political Science 6 (2): 43-75. Gunter, Frank. (1996) ‘Capital Flight from the People's Republic of China’. China Economic Review 7 (1). 77-96. Gunter, Frank. 2004. ‘Capital flight from China: 1984-2001. China Economic Review 15 (1). 63-85. Hamrin, Carol. 1990. China and the Challenge of the Future. Boulder: Westview. Hou, Yu. 2004. ‘Local Protectionism: The Bottleneck of China’s Economic Development’. IIAS Newsletter 33. 24. Houde, Marie-France and Lee, Hak-Loh. 2000. ‘Main Determinants and Impacts of Foreign Direct Investment on China’s Economy’. OECD Working Papers On International Investment, Number 2000/4. Huang, Yasheng. 1996. Inflation and Investment Controls in China: The Political Economy of Central-Local Relations During the Reform Era. New York: Cambridge University Press. Huang, Yasheng. 2002. Selling China: Foreign Direct Investment During the Reform Era. Cambridge: Cambridge University Press. Jin, Bei. 1997. ‘The International Competition Facing Domestically Produced Goods and the Nation’s Industry’. Social Sciences in China 18 (1). 65-71. Lau, Lawrence., Qian, Yingyi., and Roland, Gérard. 2000. ‘Reform Without Losers: An Interpretation of China’s Dual Track Approach to Transition’. Journal of Political Economy 108 (1). 120-63. Lauffs, Andreas and Tan, Andrew. 2002. ‘A New Foreign Investment Regime’. The China Business Review 29 (4): 22. Lemoine, Françoise. 2000. FDI and the Opening Up of China's Economy. Paris: Centre CEPII Working Paper No. 00-11. Lemonie, Francoise. and Unal-Kesenci, Deniz. 2004. ‘Assembly Trade and Technology Transfer: The Case of China’. World Development 32 (5). 829-50. Li, Jie., Qiu, Larry., and Sun Qunyan. 2003. ‘Interregional Protection: Implications of Fiscal Decentralization and Trade Liberalization’. China Economic Review (14). 227-245. OECD. 2003. OECD Investment Policy Reviews - China: Progress and Reform Challenges. Paris: Organisation for Economic Co-operation and Development. People’s Daily. 2005. ‘China's Trust Investment Companies Report Growing Business’. January 19. Roberts, Dexter. 2005. ‘China: Go West, Westerners’. Businessweek. November 3. Rosen, Daniel. 1999. Behind the Open Door, Foreign Enterprises in the Chinese Marketplace. Washington, DC: Institute of International Economics. Shen, Liren, and Dai, Yuanchen. 1990. ‘Woguo “Zhuhou Jingji” De Xingcheng Ji Chi Biduan He Genyuan (The Creation, Origins and Failings of Feudal Economies in China)’. Jingji Yanjiu (Economic Research) (3). 12-20. Steinfeld, Edward. 2004. ‘China's Shallow Integration: Networked Production and the New Challenges for Late Industrialization’. World Development 32 (11). 1971-87. Tsai, Kellee. 2004. ‘Off Balance: The Unintended Consequences of ‘Fiscal Federalism in China’. Journal of Chinese Political Science 9 (1). 7-26. Tso, Allan. 1998. ‘Foreign Direct Investment and China’s Economic Development’. Issues and Studies 34 (2): 1-34. US Department of State. 2005. 2005 Investment Climate Statement – China’. Available at http://www.state.gov/e/eb/ifd/2005/42000.htm Wang Rongjun. 2004. ‘China’s Foreign Trade Policy after WTO Accession’. In The Rise of China and a Changing East Asian Order, eds., Kokubun Ryosei and Wang Jisi, 119-137. Tokyo: Japan Center for International Exchange. Wang, Yong. 1998. ‘Momentum vital for GDP Exports Require Stimulus’. China Daily. May 21. Wong, John and Zheng Yongnian. Eds. 2001. The Nanxun Legacy and China's Development in the Post-Deng Era. Singapore: World Scientific Publishers. Woodard, Kim and Wang, Anita Qingli. 2004. ‘Acquisitions in China: A View of the Field’. China Business Review 31(6): 34-38. Wu, Friedrich, Poa, Tiong Siaw, Yeo, Han Sia and Puah Kok Keong. 2002. ‘Foreign Direct Investments to China and Southeast Asia: Has Asean Been Losing Out?’. Economic Survey of Singapore (Third Quarter). 96-115. Wu, Friedrich and Tang, Leslie. 2000. ‘China’s Capital Flight, 1990 – 1999: Estimates and Implications’. Review of Pacific Basin Financial Markets and Policies 3 (1). 59-75. Yang, Yao. 2004. ‘Government Commitment and the Outcome of Privatization’. In Governance, Regulation, and Privatization in the Asia-Pacific Region, eds., Takatoshi Ito and Anne O. Krueger, 251-278. Chicago: University of Chicago Press. Yang, Yongzheng. and Tyers, Rod. 2000. ‘Weathering the Asian Crisis: The Role of China’. Australian National University, Asia Pacific School of Economics and Management Working Paper No 00-1. Yeh, Anthony. 2000. ‘Foreign Investment and Urban development in China’. In China’s Regions, Polity, & Economy: A Study of Spatial Transformation in the Post-Reform Era, eds., Si–Ming Li and Wing-Shing Tang, 35-64. Hong Kong: Hong Kong University Press. Yu, Yongding. 1999a. ‘China’s Macroeconomic Situation and Future Prospect’. World Economy and China (3-4). 4-13. Yu, Yongding. 1999b. ‘On Capital Controls’. Chinese Academy of Social Sciences, Institute of World Economics and Politics Working Paper. Available at http://www.iwep.org.cn/chinese/gerenzhuye/yuyongding/wenzhang/capital%20controls.pdf Zhao, Linghua. 1999. ‘An Analysis of the Forms of Irregular Capital Flows in China’. International Economic Review (3-4).
URI:	http://wrap.warwick.ac.uk/id/eprint/282

Request changes to a record

Actions (login required)

View Item