Foreign Direct Investment and Activities of Transnational Corporations of the PRC

Publication type Article
Status Published
Occupation: Professor, Director of the Institute of World Economy and International Relations, BSU
Affiliation: Baikal State University
Address: Russian Federation, Irkutsk
Occupation: Senior Lecturer, Department of Russian Language and Intercultural Communication
Affiliation: Baikal State University
Address: Russian Federation, Irkutsk
Journal nameProblemy Dalnego Vostoka
EditionIssue 2

Based on the analysis of the transnationality index, the nature of mergers and acquisitions of the largest Chinese companies, as well as the dynamics and geographical distribution of their outward direct investments, the paper concludes, that in case of taking into account some specific factors of institutional environment, J. Dunning's eclectic paradigm can be used as basic theoretical framework for the analysis of foreign investment activities of the largest Chinese corporations. In favor of an eclectic paradigm, the theory of “newborn firms,” the Uppsala internationalization model has been consistently rejected. In the final part, the paper describes the possible influence of the institutional environment on the export of foreign direct investments by Chinese companies.

KeywordsChina, foreign direct investments, outward investments, multinational companies, eclectic paradigm, institutional environment, institutional factor
Publication date10.06.2020
Number of characters38031
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