China’s Overseas Direct Investment and Reverse Knowledge Spillovers

Abstract

Since the launch of its ‘go global’ strategy in 2001, China’s outward foreign direct investment (OFDI) has increased dramatically. China’s global OFDI stock increased from US$32.69 billion in 2001 (UNCTAD 2003) to US$1.01 trillion in 2005 (UNCTAD 2016). Drivers of outbound investment by Chinese multinational enterprises (MNEs) are diverse. Alongside market-seeking, efficiency-seeking and resource-seeking, one of the main motives of Chinese MNEs is strategic asset– seeking, the aim of which is the acquisition of advanced technology, production knowhow, modern management skills and internationally recognised brands in support of the long-term economic development of China (e.g. Buckley et al. 2007; Liu