The role and importance of the Chinese government for Chinese outward foreign direct investments

This article investigates the relationship between the Chinese government and MNEs in Outward Foreign Direct Investment (OFDI). It presents a 2x2 matrix where the interest of the Chinese government and MNEs are analysed. The article identifies market seeking and strategic asset-seeking as high interests for both, while efficiency seeking motives Chinese companies’ interests are high, but government interests are low. Regarding resource-seeking and balancing foreign currency reserves, Chinese government interest are high and MNEs interests are low. The study allows a better understanding on the role of the Chinese government in the decision-making process in OFDI.