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Focus on China - special section : introduction

Laforet, Sylvie and Paliwoda, Stanley and Chen, Junsong (2012) Focus on China - special section : introduction. Journal of World Business, 47 (1). pp. 1-3. ISSN 1090-9516

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Abstract

With continuous high speed increase of GDP, China is now playing an increasingly important role in global economy. China is no longer just an attraction for inward foreign direct investment (FDI), but has recently become a major source of outward foreign direct investment (OFDI). The average annual outward FDI flows from China have grown from USD 2.3 billion in the 1990s to 15.8 billion in the 2000s, reaching over USD 181.2 billion by the end of 2009. Compared with other countries, China has become the third largest OFDI investor in the world (UNCTAD 2009). The financial crisis in Europe and the U.S. indeed has presented many opportunities for Chinese investors. The OFDI from China in 2008 and 2009 has accumulated USD 84 billion, accounting for 46.3% of China OFDI in the history. Chinese companies have adopted the different entry models for going global, from exporting and OEM in early stage to establishing joint-ventures and acquiring local companies. China government has been actively encouraging Chinese firms’ “Going Global” strategy as an attempt to improve their competitiveness and secure an international business presence. Some Chinese brands have achieved considerable success in the global market.