China and Foreign Investors. The End of a Beautiful Friendship?

The promotion of FDI has been an important component of China's economic reform process and China has become one of the most important destinations of FDI. Although heavy-handed interventionism is nothing new in China, the direction of state-interventions seems to have shifted lately away from opening up to foreign investment towards a more careful and selective stance with a view to promoting the emergence of national champions. The objective of the present paper is to examine the evolution in the Chinese Government's approach to inward FDI, as well as a number of other economic policy decisions which may impact on foreign investors operating in China.
Related centers and programs
Discover our other research centers and programsFind out more
Discover all our analysesSri Lanka’s NPP Government. From System Change to Structural Compliance
In September 2024, a relative outsider to Sri Lanka’s two-party-dominated political system, Anura Kumara Dissanayake, won the presidential elections. The anti-establishment, populist movement he represented, the National People’s Power (NPP), went on to receive an overwhelming mandate in the November 2024 general elections, winning 159 seats in a 225-member parliament.
Japan Under Trump: Alliance Strains, the Push for Autonomy and Essential Partnerships
Japan is under pressure from the United States (US) on punitive tariffs and demands for increased defence spending. This has sparked deep concern over US credibility and triggered growing domestic calls for greater autonomy.
Quest for Strategic Autonomy? Europe Grapples with the US - China Rivalry
Building on the 2020 European Think Tank Network on China (ETNC) report, which assessed Europe’s positioning amid the strategic rivalry between the United States and China, this edition re-examines the geopolitical landscape in light of the Covid-19 pandemic, Russia’s war in Ukraine and Donald Trump’s return to the White House. This report features 22 national chapters and one dedicated to the EU, analysing the evolution of Europe’s relations with Washington and Beijing, the range of approaches to dealing the US-China rivalry and how these are expected to evolve.

France seeks third way between US and China in Southeast Asia
The French leader sent a message of partnership but gave few concrete details on sustained engagement plans.