Foreign Investments and National Security: The Case of Russia

Written by

Hans Jørgen Gåsemyr

Senior Research Fellow

Ed.

Jakub M. Godzimirski

Research Professor

Morten Skumsrud Andersen

Senior Research Fellow

Summary:

Foreign investments have played pivotal roles in China’s overall economic growth over the last several decades, but for different reasons and with varying intensity. In this chapter, we focus mainly on inward foreign direct investment (FDI) and perform three tasks. First, we provide an overview of the foreign investments that have entered China—since economic and market liberalization and internationalization reforms started in the late 1970s. Second, we consider inward FDI with regards to sectoral distribution, where most investments come from, and which sectors are most popular among foreign investors. Third, we discuss Chinese FDI policies and regulations with focus on motivations and seek to explain that although China has changed its regulatory measures considerably over the years, it has remained relatively restrictive and selective in terms of which sectors and types of investments have been, and are still, open for foreign investment.