A Policy Perspective on Outward Foreign Direct Investment by Chinese State-Owned Enterprises 

Steven Globerman

Author information




College of Business and Economics, Western Washington University, Bellingham, WA 98225, USA; The Fraser Institute

E-mail: Steven.Globerman@wwu.edu

Abstract




A growing number of developed country governments in recent years have adopted a hostile attitude towards foreign direct investments undertaken in their markets by state-owned enterprises (SOEs), the latter often based in China. The broad reason for this hostility is the belief that state-owned enterprises pursue non-commercial objectives with resulting damage to host economies. This paper argues that the empirical evidence shows SOEs are increasingly exhibiting market-owned behavior. Furthermore, any adverse consequences of non-commercial behavior are likely to be realized primarily by the SOEs themselves.

Keywords




state-owned enterprises, China, acquisitions, non-commercial objectives, unfair competition

Cite this article




Steven Globerman. A Policy Perspective on Outward Foreign Direct Investment by Chinese State-Owned Enterprises. Front. Econ. China, 2016, 11(4): 537‒547 https://doi.org/10.3868/s060-005-016-0028-8


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