$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

China As A Global Investor In Business

tag 0 Download9 Pages / 2,237 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT


Discuss about the China as A Global Investor In Business.




The development of the Chinese economy is creating strains in the international market. China is considered as one of the largest trading nation and the second largest economy. Almost $2.4 trillion net foreign assets were estimated in 2015 in China compared to Japan’s net foreign assets of $3.6 trillion. The reason behind the account surplus is the enhancement of net foreign assets (National Bureau of Statistics of China 2018). In China, most of the foreign assets investments come from the central bank by international reserves, invested by the U.S. as well as different kinds of treasury bonds and similar instruments. As the investment opportunities for the native business diminishes in China, excess capability and declining profitability has also increased in other nations, resulting in a commercial outflow of capital to run at a high level. “Go Global” investment strategy by China has made an extravagant foreign investment which amounted to USD 900 million it was also equivalent to 2.2% of China's inward FDI in the same year (National Bureau of Statistics of China 2018). 

Foreign Direct Investment inward flow in China

Foreign direct investment is a long-term relationship between investor and enterprise who are cumulatively heading towards the objectives of the business organisation which in turn impacts the economy of the country. Industries operating in an economy can profit through this process with advantages in the supply chain management as well. The industry gets profit due to Foreign Direct Investment and an overall economic development was introduced in China (Gilboy 2016). The flow of FDI is the sum of three components such as equity, capital, reinvestment earnings and investments; these aspects are connected with the inter-company debt transaction. The technical enhancement, administrative development and increase level of production is the area of focus in this business module. The significant portion of emerging market change is associated with the investment as well. In case of global investment, accurate reflection can be judged through the financial condition of China and series of domestic incomes that China acquired through this process.


In China, there are different special economic zones that were announced on the 15th session of fifth NPC. Zhuhai, Shenzhen, and Shantou had been announced officially by the government and after that Xiamen was added to the special economic zone (Cavusgil et al. 2014). According to the statistic provided by the China government, in between 1979 to 2006,a sum of 596,110 projects is run by the foreign direct investment. A utilizing value of US$1.67 trillion on foreign capital and a huge contract value had signed in that time (National Bureau of Statistics of China 2018). China became the largest receiver of FDI among the developing nations. Since the biggest portion of FDI has come from Taiwan and Hong Kong, China can gets a good amount of products from these countries as well. 57% of FDI is single-handedly delivered by Hong Kong. Almost 1000 foreign companies’ regional headquarters are situated in Hong Kong and this is the reason channelized investment is persisting in Hong Kong.

Basic drivers behind the change

There are some key drivers of FDI are as follows:

  • economic growth
  • rapid economic
  • industrial development

In case of economic growth, the business organisations that come up in the Chinese market are the main source of income as GDP. Technology plays a vital role in this situation.  The country has impactful performance in technology and that main reason for export in the country and industrial development. Resource movement and logistic facilitation are two other aspects that impacts industrial market. Logistic management is another productive aspect that will come in transforming the link and provide a constructive drive for the nation.

The most important analysis is channelizing through China, in recent years and foreign-invested firms are taking advantage of them. The reason behind why China has become a global hotspot is because the nation is manufacturing their own products and in case of diverse aspects of finance, marketing and accounting. China is now the official member of WTO. The nation has a huge domestic market which impacts the growth of economy, political stability, policy consistency and legal reformation of China is the major aspect of the distribution of their market (Peng 2012).


Industries are rapidly growing in China and in case infrastructure and production are the reason behind global development. Realizing the potential of the industry and possible outcome it is important to grab the market and make use of the opportunities of the external environment. A significant contribution to large-scale employment is catering to the employment requirement of the native people and they will develop the work culture as the nation’s economy is much known by them. In recent past, direct and indirect employment is around 13.1 million people and the GDP has risen up to 2.23% to 4.10%, which is an exceptional change that comes into the drilling of factors.

Chinese Government Plan

The Chinese government has ethics and cultures that are delivered in a written form as rules and legislation (Ruggie 2013). Foreign Banks are established and their business is also affiliated with China as well. The minimum capital of RMB is 1 billion and each brand must have a minimum of 100 million (National Bureau of Statistics of China 2018). The financial export market in China delivers bilateral trade execution in some place and all the components have synthesized the level of business opportunities in China as well.

China’s Overseas Direct Investment

The foreign direct investment opportunities in China are high in theyear2013-2016. Many investments from different countries happen in those sessions which also contribute to the economic development of China. Tapping into a new market and gaining superior technology used by the overseas foreign companies. Belt and Road is an Initiative that has been taken by the Chinese government. This initiative has helped the government develop connectivity with the Eurasian countries. It is also a way to ocean-based Maritime Silk Road and land-based Economic belt process. In the last few years, Belt and Road Initiative process has focused on the infrastructure investment, construction materials, automobile, real estate, railway and highway equipment transfer and iron and steel materials. The project is one of the most valuable prospect which covers more than 68 countries and enhancement of 40% global GDP. Opportunity and risk factor both come up with the simultaneous way and market opportunities for investment have risen up due to that process (Ahuja et al. 2012).  Almost 8000 Chinese-funded companies offshore by the Ministry of Commerce and total investment recorded as $93.8 billion (National Bureau of Statistics of China 2018). The growing global stock of Overseas Foreign Investment recorded in 2007 was $117.9 billion. The global enhancement of revenue and demonstrative approach to the international brand has got some advantages in China and that is the most important part of ODI. The Belt and Road Initiative process deliver economic cooperation as well and expansion of investment is impacting on this.


China’s old-fashioned monopolies, state-run efficacies, and community facilities are steadily pretty available to secluded and even foreign investment. China will pursue to encourage wider, more bi-directional directness, build foundations and devices that encourage teamwork and are well-suited with global trade and speculation guidelines. In case of emerging industries business opportunities are high and that is the reason most of the innovative economic structure has been undertaken by the country as well. Increasing openness and global integration process are also conducted through the government and cross-culture agricultural agreement also boosted up the contradicting nature of orientation.

China is among the top ten countries to have contractual projects. The commercial service areas are connectively advanced in China and lots of other countries are self-driven by that process. The purchasing and selling goods are centralized by several ministries and that is the reason Chinese ministry has evolved some sectional change in their government (Nolan2012). Bank of China, China Council for the Promotion of Foreign Trade section drives the trade national policy of China. Trades are separated from the production, thus a loss in production for any company has not directed apparent effect on the country’s economy. Most of the trades are confines in the communist countries so the range of monopoly situation in business is present in that nature. In China, the state-owned monopolized operations in business dampened into the production sector in China and that also not linked with the market situation. The market always wants the competitive figure and China is doing that only to establish their nature of ODI in front of international business scenario.

China selects their direct investment in theU.S. in most of the cases but in 2016 the projected outcome has turned a bit and Singapore has overtaken theU.S. in case of foreign direct investment ration in China. The paper states that China’s Ministry of Commerce has witnessed nonfinancial ODI rangeof 44.1 percent enhancement to $170 billion(National Bureau of Statistics of China 2018). Though, the inclination in 2017 has been in desolate dissimilarity. Chinese policymakers have required controlling “illogical” ODI and have determined on savings toward the Belt and Road proposal (Brødsgaard 2012). Singapore and Malaysia, these two nations have attractive BRI destinations and they have invested climate to offer good opportunities in business at a low level of risk. That is the reason most of the associate investment takes place in those countries and optimum balance present in both the countries.

Rise in Overseas Direct Investment in China

The Chinese government enhances the overseas business opportunities and noticed on the foreign currency reserves at home. In comparison with Japan, American firms are holding the assets in that nation but in most of the case expected foreign currency, thereserve is not met with the desired amount (Lasserre 2017). Approval of domestic trade policies and adapted formation of new business results are the concern idea that produces more productivity in China. In China, the reformation of theforeign direct system was revised after the implementation of SEZs(Ramasamy et al. 2012). Almost 30 up foreign trade companies are set by the government and trade licenses are also provided to them for business but in most of the cases challenges will arise when they have to find the easier way to mitigate those. In case of agricultural and rural products the rate of manufacturing is high and that provide less opportunity for the native nation to do the business, in that case, the importance of overseas business come information where other countries have this opportunity to invest in China. This is the particular time when trade liberation happens and through this process, China becomes the largest porter of clothing and textiles.


Current development and inflow of FDI in China

The distribution of country’s outward FDI flows in the industry level has segmented into different sections. Wholesale, retail, trade mining, fishery, information technology, construction, transportation, storage, real estate, washing, coal mining all these sections are under the ODI aspect of China. In case of metal mining resources, are theimportant and sectional distributions of theproduct are important for the development of national economy in China. As per the graph is given in appendix 2, mining is the largest sector from all as it contains 40.3% of total FDI concentration and most of the resources are collected from overseas companies. Though mining section decreases in 2015 compared with 2014 as well (Davies 2016). The restricted form of the industry and sharp contrast of accounting sector is the major aspect of annual growth and that flows with the diversified range of products (Deng 2013).


Therefore, all the discussions are addressing towards the overseas direct investment in China has surpassed the foreign direct investment. The report consists all the FDI and OFDI driving issues of China and the economic balancing situation that China has created in these recent times. The report also highlights the government initiation that possesses all the rules and regulations of business and development of inflow business FDI in China. The rise of ODI in China is discussed in the report and how it provides the benefit for the business organisations prevalent in china.



"National Bureau Of Statistics Of China". 2018. Stats.Gov.Cn.

Ahuja, Mr Ashvin, and Mr Malhar Nabar. Investment-led growth in China: Global spillovers. No. 12-267. International Monetary Fund, 2012.

Brødsgaard, Kjeld Erik. "Politics and business group formation in China: the Party in control?." The China Quarterly 211 (2012): 624-648.

Cavusgil, S. Tamer, Gary Knight, John R. Riesenberger, Hussain G. Rammal, and Elizabeth L. Rose. International business. Pearson Australia, 2014.

Davies, Ken. "China investment policy: An update." OECD Working Papers on International Investment 1 (2013): 1.

Deng, Ping. "Chinese Outward Direct Investment Research: Theoretical Integration and Recommendations. ??????????????: ?????." Management and Organization Review 9, no. 3 (2013): 513-539.

Gilboy, George J. "The myth behind China's miracle." In SEEKING CHANGES: The Economic Development in Contemporary China, pp. 1-16. 2016.

Lasserre, Philippe. Global strategic management. Palgrave, 2017.

Nolan, Peter. "Is China buying the world?." Challenge 55, no. 2 (2012): 108-118.

Peng, Mike W. "The global strategy of emerging multinationals from China." Global Strategy Journal 2, no. 2 (2012): 97-107.

Peng, Mike W. Global business. Cengage learning, 2016.

Ramasamy, Bala, Matthew Yeung, and Sylvie Laforet. "China's outward foreign direct investment: Location choice and firm ownership." Journal of world business 47, no. 1 (2012): 17-25.

Ruggie, John Gerard. Just Business: Multinational Corporations and Human Rights (Norton Global Ethics Series). WW Norton & Company, 2013. 2018 Available at: [Accessed 28 Feb. 2018].


Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). China As A Global Investor In Business. Retrieved from

"China As A Global Investor In Business." My Assignment Help, 2019,

My Assignment Help (2019) China As A Global Investor In Business [Online]. Available from:
[Accessed 29 May 2020].

My Assignment Help. 'China As A Global Investor In Business' (My Assignment Help, 2019) <> accessed 29 May 2020.

My Assignment Help. China As A Global Investor In Business [Internet]. My Assignment Help. 2019 [cited 29 May 2020]. Available from:

We provide all types of essays. comparision and contrast essays are common essays provided in assignments of high school and college. We have helped hundreds of students get epitomic comparision and contrast essays with valid points for and against and driving relevant and insightful comparision of ideas, topics, slants etc.Our comparision and contrast essays have a clear conclusive summary of all the points. No vague points are included in comparision.The essays have clear thesis statements and each paragraph contains clear topic sentences. Better than the best is what we aim for in such essays. Connect with us to ace your academic journey in style with quality works.

Latest Management Samples

239SAM Global Supply Chain Management For Distribution Centers And Retailers

Download : 0 | Pages : 7
  • Course Code: 239SAM
  • University: Coventry University
  • Country: United Kingdom

Answer: Introduction Global supply chain management includes a network of suppliers and manufacturers along with warehouses, distribution centers, retailers and wholesalers. This network in the supply chain is created among the companies all over the world that is responsible for managing, producing or distributing specific kinds of goods and products. There are also a range of special facilitating systems such as information and transportati...

Read More arrow Tags: United Kingdom Birmingham Management University of London 

INFT1021 IT Project Management

Download : 0 | Pages : 9

Answer: Background A dental practise named Dental R Us was set up 2years back in order to accommodate dental care in a newly developed residential area with one dentist, a dental assistant an administrative assistant. However, with an effective operation of the dental practise, the client base has increased as well resulting in the addition of two new dentist and dental assistants or supporting the Practise manager. It is quite a problem to m...

Read More arrow Tags: Australia Stirling Management accounting  University of New South Wales Humanities 

FH1S39 Critical Practices

Download : 0 | Pages : 10

Answer: Introduction The evolution of photography was based on the discovery of the two principles of photography- the ‘camera obscura’ image projection and with the understanding of the fact that certain substances are altered and changed with their exposure to light and the change in the angles. It has helped in the development of the chief concepts of photography. At certain points of time, images seem to be mirrored ...

Read More arrow

MANM4000 Introduction To Management01

Download : 0 | Pages : 9
  • Course Code: MANM4000
  • University: Kaplan University
  • Country: United States

Answer: Introduction Leadership is the integral part of an organisation that leads the employees towards acquiring the goals. The case study is also focusing on developing the understanding regarding the leadership and performance management. The study reflects the ineffective interpersonal relationship with Tom with Frank that was visible in their conversation. The study would thus reflect on the specific issues drawn from the case study and...

Read More arrow

BUSN20017 Effective Business Communications001

Download : 0 | Pages : 7
  • Course Code: BUSN20017
  • University: Central Queensland University
  • Country: Australia

Answer: Introduction This study deals with setting up a new business plan on Garden Landscape developers. For this assignment, proper emphasis has been given on selected contextual factor (Globalization in this case). The current segment illustrates potential benefits and challenges that is associated with the given start-up business plan on Garden Landscape developers (Maryanti, et al., 2014). In the next segment, there is proper explanation...

Read More arrow

Save Time & improve Grade

Just share Requriment and get customize Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2279 Order Completed

97% Response Time

Zachary Perez

PhD in Computer Science and Information System

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1592 Order Completed

96% Response Time

Jane Sima

Ph.D in Psychology with Specialization in Industrial-Organizational Psychology

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

265 Order Completed

97% Response Time

Ken Campbell

MSc in Electrical Engineering

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

It was a good assignment, everything was according to details. it was of high quality. I got HD in this assignment


User Id: 306529 - 29 May 2020


student rating student rating student rating student rating student rating

superb work done within the given time limit. really amazing expert who has done my assignment.


User Id: 430182 - 29 May 2020


student rating student rating student rating student rating student rating

good i am happy for your work , i hope i will submit all my assigmnets to you people


User Id: 412937 - 29 May 2020


student rating student rating student rating student rating student rating

Great work. I really do appreciate the professionalism and competence of the expert who completed my work. They did a very good job. English was prefect and content well presented. Thank you.


User Id: 427917 - 29 May 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?