June 2014
Investment Abroad: The Dragon Steps Out
China is now the world’s third biggest source of outward direct investment, and the things it is buying are rapidly changing. Gone are the days when Chinese outward investment was all about state-owned enterprises buying oil wells and iron ore mines. There are still plenty of state-driven resource deals, but 40% of Chinese direct investment is now conducted by private firms, who are mainly interested in consumer, technology and service targets in rich countries like the United States, Australia and Japan. In this issue, CEQ examines the changing face of Chinese investment, the decline of the “China, Inc.” model of strategic resource acquisition, and the impact of Chinese official assistance in Africa.
Also in this issue:
- Arthur Kroeber analyzes how Xi Jinping is handling slower growth, structural reform, and ever more controversial anti-corruption campaign
- Tom Miller reports on the expanding reach of Chinese influence in Laos
- Chen Long forecasts the path to interest-rate liberalization, a crucial part of financial reform
- Expert contributors explain why changes to the one-child policy are too late to do any good, and what foreign companies have to fear from more vigorous regulation
- We review Evan Osnos’s new book, Age of Ambition