Chinese SOE Investment: An Economic Statecraft

Citation: Bashar H. Malkawi (2019) Chinese SOE Investment: An Economic Statecraft. Opinio Juris (RSS)
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Tagged: Business (RSS)

Summary

China’s rising economic preeminence has been stunning, firmly ensconcing China as the second most powerful world economy replacing previously secondranked Japan. In a remarkably short span, less than 15 years, the US economy has experienced a relatively huge decline vis-à-vis China on a nominal GDP basis.China, many large companies are state-owned enterprises (SOEs), and are the most common form of entity that are involved investment.

In evaluating FDI from U.S. companies, the presumption is the decision to invest is 100 percent profit motivated; but the same cannot be said of Chinese SOE investment.