Perspectives of Development for Foreign Direct Investment in China

This thesis provides a comprehensive analysis of the development, determinants, and impacts of Foreign Direct Investment (FDI) in China, examining both inward and outward flows. Framed within the broader context of China’s economic transformation and global integration, the study explores the financial, institutional, and corporate factors shaping FDI dynamics. It investigates the historical evolution of FDI policies, sectoral distribution patterns, and recent regulatory reforms. The research also evaluates China’s emergence as a leading source of outward FDI, analyzing the strategic motivations of Chinese firms and the implications of their global expansion. Key challenges for foreign investors including economic, structural, and geopolitical risks are critically assessed. Through macroeconomic analysis, the study identifies the primary determinants that shape FDI inflows. By offering theoretical insights into the dynamics of FDI in China and practical considerations for navigating its evolving investment environment, this thesis seeks to support policymakers, scholars, and international investors in gaining a clearer understanding of China’s role in global capital flows and its broader economic trajectory.