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China's interest in Afghanistan has grown substantially over the past few decades. This is evident from the fact that Logar Aynak, the copper extraction project of China, is the largest foreign investment in Afghanistan. In this paper, China's growing engagement in Afghanistan is studied, especially China's role in the aftermath of the US withdrawal from Afghanistan is examined at length. The main problems and obstacles China faces in Afghanistan are explored, and challenges and opportunities arise as a result are discussed as well. Considering China's policy of careful engagement in the region, the nature of China's growing involvement in Afghanistan is studied. [ABSTRACT FROM AUTHOR]

This paper investigates the most essential issues behind the ongoing U.S.–China trade war. In addition to the apparent bilateral trade imbalance, China's status as a non-market economy (as labelled by the Trump administration) is one of the most fundamental reasons that the United States triggered the U.S.–China trade war. Accordingly, the United States' most pressing request is to urge China to implement further structural reform. This paper argues that the current Chinese economy is quickly becoming a modern market economy with a unique Chinese character. This is evident from ongoing structural reform to create a competitive environment between state-owned enterprises and private enterprises, and through a further opening-up of the market by guaranteeing a wider and deeper market access for inbound foreign direct investment. [ABSTRACT FROM AUTHOR]

This paper analyzed how South Korea’s intra-industry trade (IIT) with her major trading countries (i.e., China, the USA, and Japan (CUJ)) in the manufacturing sector changed over time for the period of 1994–2011. It was found that South Korea’s IIT with China mainly increased through economies of scale (ES), the ratio of inward and outward foreign direct investment to total investment (FDI), the ratio of intermediate cost to total cost (II), and R&D intensity (RD). On the other hand, South Korea’s IIT with the USA was found to mainly increase through ES, FDI, and RD. Finally, RD, FDI, and II variables are found to be the most important determinants for South Korea’s IIT with Japan. [ABSTRACT FROM AUTHOR]

This paper analyzes aggregate return to capital statistics for China, the United States, and Japan in order to investigate the causes of an unusually high investment rate and increasing foreign direct investment (FDI) inflows to China. We also analyze labor's share of output and capital-output ratio statistics to predict future trends in the return to capital in China. Our findings allow us to come to four conclusions: (1) China's high investment rate corresponds to a high return to capital in the country, just as high investment rates in the United States and Japan historically correspond to a high return to capital. (2) A comparatively higher return to capital attracted FDI to China. (3) Investment rates among these three countries show no signs of convergence so far. These differences will likely persist, encouraging FDI to continue to flow into China in near future. (4) The return to capital in China will likely decrease in the long run, as the experiences of Japan and the United States indicate, but will only decrease and become stable after a certain level of capital stock and development is reached. [ABSTRACT FROM AUTHOR]

The article focuses on local corruption and global capital flows. The paper addresses three inter- related issues. First, the influence of corruption on inward foreign direct investment. Second. is China an exceptional case in which corruption does not do much harm and third, whether corruption distorts the composition of capital inflows in a way that might raise the likelihood of a currency crisis. International direct investment reached $3.5 trillion in 1997. A small number of countries in the industrial world account for the bulk-about 68 percent-of this investment. Yet international direct investment is especially important for developing countries, for which it is not only a source of scarce capital but also an important conduit for the transfer of technological and managerial knohow. The recent currency crises in East Asia, Russia, and Latin America have highlighted the importance of the composition of capital flows for developing countries. One increasingly wide-spread view on the causes of this crisis is that so-called crony capitalism is partly responsible. The other view is that the confidence of international creditors in developing economies is fragile, so that small changes in the outlook can give rise to self-fulfilling expectations of a crisis.

In this paper, I present a theoretical framework designed to explain People's Republic of China ( PRC) outward foeign direct investment in the USA and Europe, in search of research and development ( R& D) acquisition modeled as positive 'spillover effects' in a two-country model with firms distinguished by their ability to innovate. The motivation for this paper is the growing PRC merger and acquisition activity in Europe and the USA. The fact that the PRC, despite its many successful internal reforms, cannot induce innovation activity designed to alter its external sector from one that is based on cheap labor to one that is based on innovation-rich products, has forced it to use its extensive reserve holdings to acquire the necessary R& D via merger and acquisition. These acquisitions will allow the PRC to alter their domestic and export product mix and thus avoid the middle-income trap. [ABSTRACT FROM AUTHOR]

This paper constructs a two-level model to explain China-U.S. relations. We find that at the state level, the interdependence between China and the United States, which comes from their bilateral trade and foreign direct investment, is asymmetric. Such asymmetric interdependence favors the United States in pushing the Chinese government to make concessions when they have conflicts. However, at the society level, China can penetrate into American society to intervene or influence American foreign policymaking. In this paper, it is argued that the outcome of China-U.S. relations is determined not only by the asymmetric interdependence at the state level or societal penetration respectively, but also by the interaction of these two factors in the process. Finally, the new development of China-U.S. relations since the inauguration of the Obama administration is also examined. [ABSTRACT FROM AUTHOR]

As the Federal Reserve engages in its second quantitative easing monetary policy, global emerging economies will suffer a shock of 600 billion dollars of funds. What is more, the Federal Reserve will continue to follow a policy of quantitative easing, and some of these excess dollars will flow into China and other emerging markets through alternative remittance channels. Excess liquidity may become 'hot money' that disrupts the capital market and intensifies macroeconomic instability. This paper first studies the basic operational principle of the alternative remittance system as well as its actual operation in China. After examining domestic and foreign scholars' research methods with respect to the alternative remittance system, we estimate the size of hot money flowing through the alternative remittance system in China by building an Error Correction Model and analyze the difference between the result we calculate from it and the actual amount. Then based on this, we put forward comprehensive policy recommendations to regulate and supervise the alternative remittance system in China in terms of underground banks, trade fraud and foreign investment activity. [ABSTRACT FROM AUTHOR]

The growth of outward investment from China has generated expressions of concern from policymakers in the United States regarding the economic and national security impacts of such investments. While inward foreign direct investment (FDI) has come to be viewed by most observers as generally imparting net economic benefits to the host economy, acquisitions of US companies by Chinese multinational companies (MNCs) have been criticized on several grounds. One is based on the mode of entry itself: some critics believe that entry by acquisition brings lower benefits than greenfield entry. A second and more prominent concern is that acquisitions of US companies by Chinese state-owned enterprises (SOEs) may be motivated by non-commercial objectives which, in turn, make those acquisitions of questionable value to the host economy. In this paper, we argue that Chinese FDI in the United States is more likely to take the form of acquisitions than greenfield investments for the foreseeable future. However, there is no strong case to be made that the host country economic benefits from Chinese FDI would be larger if entry took place primarily through greenfield investments. Furthermore, most of the alleged costs to the US economy from inward FDI from China are either unlikely to occur or are already anticipated by existing US laws and regulations, thus necessitating no additional, specific legislation. [ABSTRACT FROM AUTHOR]

Abstract: This paper will focus on the recent development of the Chinese IP abuse legislation and its potential impact on IP protection and the operation of technology-driven foreign enterprises in China. Firstly, it will provide a brief overview of the TRIPS''s requirements on IPR abuse and technology transfer, and the recent development of IP abuse laws at the domestic level, particularly in the US and the EC. Secondly, by drawing a comparison with similar laws in the US and the EC, this paper will critically examine the recent development of the Chinese laws regarding technology transfer and IP abuse prevention, including both the recently enacted Anti-Monopoly Law 2008 (AML) and other prior-AML regulations. Thirdly, the paper will examine both opportunities and potential risks these laws may bring to foreign IP holders/technology-driven companies when operating in China, particularly focusing on the impact of the IP-related provision in the AML. Recent development in antitrust litigation in which Microsoft is a party, including the recent anti-monopoly investigation against Microsoft in China, will also be examined. Lastly, it will provide some practical suggestions for foreign IP holders and technology-driven companies to operate in China, such as useful defences against potential IP abuse claims, and other strategies for flexibly applying the IP abuse rules and better participating in future IP abuse legislative process in China. [Copyright &y& Elsevier]

Objective: Despite a growing literature on the impact of economic nationalism on public attitudes toward foreign direct investment (FDI) inflows, public attitudes toward U.S. FDI outflows have been overlooked. We examine U.S. residents' attitudes toward FDI outflows to two host countries viewed unfavorably by the American public, Mexico and China, and the extent to which providing accurate information on FDI flows between the United States and these countries affects the biases toward American investment in these countries. Methods: We implemented a vignette experiment on respondents from 11 southern states in the United States. Results: We find little support for the existence of bias toward Mexico or China as destinations for American investment, nor do we find that providing accurate information on bilateral FDI flows affects perceptions of U.S. FDI outflows to these countries. Instead, individuals' economic self‐interest and sociotropic concerns influence their attitudes toward FDI outflows. Conclusions: Individuals' preferences toward U.S. FDI outflows are not shaped by biases toward investment destinations but by their concerns regarding the economic and security consequences of American overseas investment. [ABSTRACT FROM AUTHOR]

This paper analyzed the impact and causal relation of outbound Chinese FDI on growth, employment and export performance of 16 selected US States by using Panel data. The contemporaneous panel fixed estimation results shows that the impact of Chinese outbound FDI on the economic growth, employment and export of selected states are insignificant. But the impact of FDI on growth turns positive and significant when interacted with States export to China. Applying heterogeneous panel causality approach on a refined dynamic panel model indicates that Chinese FDI does not cause GDP, exports and employment while the results of reverse causality confirm that US State GDP (market size) cause the inflow of Chinese outbound FDI. The overall impact of Chinese outbound investment, a small portion of the total FDI inflow to the US, varies from conditionally positive to utterly insignificant without any adverse impact on the local economy. [ABSTRACT FROM AUTHOR]

Abstract: The United States, China''s biggest export market, is planning to impose a carbon tariff against countries without strict GHG emissions reduction standards, which will necessarily have immense influence on China''s export trade. In this dissertation, its background and imposing methods are initially discussed. Impact on China''s export trade volume, commodity prices, various industrial sectors, foreign investment manner, corporate operation modes and so forth are then analyzed explicitly. Lastly, the paper presents several policy suggestions in allusion to these impacts. [Copyright &y& Elsevier]

China has undoubtedly become an important part of the world economy. While the Chinese market has attracted an increasing number of foreign direct investments, the speed of Chinese firms' internationalization is rather slow. The ultimate competitiveness of nations depends on their ability to achieve economic dominance in other parts of the world, especially in the Triad countries, namely, USA, EU and Japan. Whether China can achieve its ambitions of becoming an economic superpower relies more on the scale of its outward foreign investment than on the number of inward foreign investment it attracts. Little is known as to why Chinese firms are slow to internationalize. This paper intends to explore the barriers faced by Chinese firms to invest abroad. Factors such as lack of ownership advantages, locational advantages, and Chinese cultural values are looked into. Based on the findings, policy implications and recommendations are provided. [ABSTRACT FROM AUTHOR]

A better functioning industrial sector matters directly for growth and contributes indirectly to poverty alleviation, unemployment reduction, trade promotion, exchange of goods and services, increased per capital income, GDP growth etc. in developing and developed economies. Nonetheless, after global financial crisis and fall of Bretton wood system a new debate was generated to re-examine the issue after the implementation of financial liberalization policies in these economies. Therefore, the central theme of this study is to test the industrial development nexus in United States of America, European Union and China. With this background in mind the present research aims to ascertain whether financial liberalization in terms of capital account openness (CAO), trade openness (TO), equity openness (EO), Regulatory factors in terms of World Governance indicator, private sector investment, public sector investment and lastly whether macroeconomic factors in terms of exchange rate (ER) and foreign direct investment (FDI) have had any impact on industrial development. Augmented dicker fully test was applied to estimate stationarity of data, vector auto regression, impulse response function and variance decomposition were used to describe shocks, after effects and magnitudes and intra and inter dependence of the study variables. EO, TO and FDI were significant determinants in European Union. However, Governance, TO and CAO are significant predictors in China and Lastly Governance, ER, FDI, private investment and public investment were significant in United States of America. [ABSTRACT FROM AUTHOR]

Joint ventures promise to be a critical vehicle for commercial interaction between the People's Republic of China and the rest of the world. Yet the joint venture format has proven to be an unstable and problematic form of organization in other settings. This article examines the experience of thirty U.S.-P.R.C. joint ventures. While a number of issues posed formidable challenges for all these firms, most have successfully dealt with the problems. The U.S. partners exhibited a surprising level of satisfaction with the performance of these ventures. Their experience provides useful insights for other firms contemplating or engaging in joint venture activities in China. [ABSTRACT FROM AUTHOR]

China's new law on joint ventures will make for an experiment in East-West cooperation. There is a need for a realistic assessment of the China market, and differences in cultural attitudes will require clarification before Western participants assume management responsibilities. [ABSTRACT FROM AUTHOR]

The article examines the economic strategy of the U.S. toward China as of 2017. Topics include the increasing flow of Chinese foreign direct investment into the U.S., the claims by proponents of the second school of thought that China is pursuing an economic strategy designed to enhance its growth and development at the expense of its trading partners, the impact of trade and trade deficits on the national security of the U.S. and the potential of China to surpass the U.S. in terms of gross domestic product.

Chinese investment in the United States has grown from less than $1 billion in 2009 to about $13 billion in 2013. China and the United States are in the process of negotiating a bilateral investment treaty (BIT). The two sides have made significant progress, but some difficult issues remain. It is in the interests of both countries to reach a BIT soon. The new BIT will not only benefit China and the United States but will also promote global investment, trade, and economic growth in many other countries. The main purpose of this article is to examine the recent changes in foreign direct investment (FDI) in China and China's outward direct investment (ODI), and to review the bilateral investment relationships between China and the United States. © 2015 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

The United States and China are at a turning point in their investment relationship. China’s previous investments in the United States were predominantly in government securities, while other holdings were negligible. Recently, the accumulation of treasury securities has slowed and direct investments by Chinese firms have risen steeply, with Beijing signaling greater support for portfolio investment outflows as well. This article describes the nascent shift in patterns of Chinese investment in the United States and uses the case of direct investment to examine the implications for US–China relations. We discuss current and future policy issues presented by Chinese foreign direct investment (FDI) in the United States, including national security, market access, and antitrust. [ABSTRACT FROM AUTHOR]

The national treatment standard has become an important feature in both domestic and international legislation, but China was historically reluctant to grant such treatment due to its former planned economy. However, as China seeks to integrate further into the world, economically and otherwise, a recent policy shift can be identified with regard to national treatment. This article examines this shift, first, by discussing China’s changing policy toward foreign direct investment. The article then analyses the establishment and development of national treatment in China in both its domestic legislation and international investment treaties. Recent measures to eliminate ‘superior national treatment’ in China’s domestic legislation are also examined, as well as China’s changing approach in international investment law. Finally, the article concludes with a discussion on the future agenda of China’s national treatment policy with particular reference to the ongoing bilateral investment treaty negotiations with the European Union and the United States. [ABSTRACT FROM AUTHOR]

US and European multinational corporations encounter greater cultural barriers than Asian multinational corporations when investing in China, and the global economic recession further raises their location risks. Using data from the ‘2007 Fortune 500’ list, we conduct conditional logit estimations to test the main determinants of the choices made by 457 US and 537 European manufacturing affiliates located in China during the period 1995–2007, just prior to the economic crisis. Our main finding is that market size, production costs, agglomeration effects and geographical location impact significantly on both US and European firms' choices. Agglomeration is the preferred strategy of the sample firms. We also show that the host sector's technological intensity has a greater impact on US firms than on European ones. [ABSTRACT FROM PUBLISHER]

Using cross-country time series data for the period 1989-2001 we analyze the Canadian and United States' outward FDI and export performances, particularly to China and India. Casual examination of data may suggest that Canada is underperforming in its exports and FDI to China, but results from our econometric model do not support that conclusion. We found that Canada's FDI in India is lower than that predicted by the model. Interestingly, while the evidence that investors from the United States tend to invest more in the growing economies is quite strong, it is weak in the case of Canada. Although in-depth research is necessary to understand these differences, it is plausible that there are mismatches between the areas where investment opportunities are available in the fastest-growing parts of the world such as China and India, and the areas in which Canadians have comparative advantage. For example, financial services and mining constitute a big share in Canadian FDI abroad but these sectors are yet to be opened up in China and India. The U.S. FDI base is more diversified and better able to take advantage of the increased opportunities in fast-growing countries such as China and India. [ABSTRACT FROM AUTHOR]

As an emerging economy, China has relied on trade for export-led economic growth, imitating the path taken by its immediate neighbours over the past 25 years and the road taken previously by Germany and Japan. The original deal to normalize relations between the USA and China has been over-taken by the massive surge in Chinese exports to the USA, the tensions occasioned by the global financial crisis and the sense in which the USA, as a debtor country, is now reliant upon China for its long-term future. This article focuses on the China Investment Corporation (CIC) Sovereign Wealth Fund (SWF), which is a product of the original deal and is emblematic of the new status of China in the global economy. It is argued that, as one of the world's largest sovereign wealth funds, the CIC has eschewed conventional portfolio investment in developed financial markets for strategic investment in resources and jurisdictions deemed essential to China's long-term growth. As such, attempts to rein-in its ambitions through the 'Santiago Principles' may be circumvented by a very different approach to investment. The CIC has the ability to re-make the rules of engagement in global financial markets, thereby redrawing the nature and scope of the long-term relationship between the two superpowers of the twenty-first century: China and the USA. [ABSTRACT FROM AUTHOR]

Does corruption in a target country create a similar effect on cross-border acquisitions (CBAs) by firms from a developed and a developing country? This article empirically examines the relationship between corruption and CBAs by firms from China and the United States. Based on a combined sample of 10,236 completed acquisitions over the period of 1990-2006, the authors find that both Chinese and U.S. firms make a significantly greater number of acquisitions in less corrupt countries. However, unlike the U.S. CBAs, we find a significantly positive relationship between the transaction value of Chinese CBAs and the level of perceived corruption in the target country. It is suggested that having been schooled in weaker institutions themselves, Chinese firms may find it easier to deal with corrupt conditions in target countries, giving them an advantage over firms from less corrupt countries. © 2010 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

During the last five years the maquiladora industry of Mexico has seen a slowing of the rapid growth experienced during the 1990s. The maquiladora expansion has been linked to U.S. foreign direct investment. Additionally, China has become a major receptor of U.S. investment for the production and export of manufacturing goods. This study estimates the impact of the industrial activity of the United States and China on employment demand in the maquiladora industry of the northern border states of Mexico. Using data on industrial activity, real hourly wages, and the real exchange rate as a proxy of Mexican competitiveness, a bounds test cointegration analysis is developed. The results show that the variables affecting external demand have impacted the maquiladora employment trend negatively, while wage differentials and the exchange rate tend to encourage maquiladora activity. [ABSTRACT FROM AUTHOR]

China's interest in Latin America has grown tremendously in the past few years. Chinese trade and investment in Latin America have soared since the late 1990s. This article examines goals, strategies, and prospects of China's quest for influence in Latin America and its implications. The author concludes that China has moved cautiously from a radical to a more pragmatic approach to achieve its goals in Latin America. Despite its disagreements with the United States about many issues, Beijing has adopted a low-key approach and managed to avoid any public confrontation with the United States in the Western Hemisphere. So far China is still a long way from posing a serious threat to the interests of the United States in the region. [ABSTRACT FROM AUTHOR]

Focuses on the reaction of U.S. businesses operating in China to the political problems in the country following the government's harsh reaction to student protesters in the late 1980s. Doing business in China has never been easy for U.S. firms, and the political turmoil that gripped Beijing and other cities last May has not made things any easier. Regardless of the immediate political outcome, the fact remains that China holds great promise as a market of one billion people, access to cheap raw materials and other Asian markets, and, perhaps most important, both a well-educated and low-cost labor pool. Sidney Wartel, managing partner of the firm Wane & Wartel, a Boston-based law firm specializing in international trade law said that the market potential is phenomenal, it really is an ideal place, second only to India. Though Wartel says he was surprised by the Chinese government's harsh reaction to the student protests, he believes the government will "change and move forward again," making the country more attractive to foreign investors.