CHINESE FOREIGN DIRECT INVESTMENT IN A GLOBAL CONTEXT: TRENDS AND STRUCTURAL SHIFTS

Abstract

This article studies the dynamics and structure of China’s international investment policy in the context of current transformations in the global economy. It explores the evolution of China’s role in international capital flows - from a country that primarily attracted foreign investment to one of the world’s leading global investors. It is determined that the formation of China’s current investment policy is linked to the economic reforms of the late 1970s, the country’s accession to the WTO, and the strengthening of state regulation of strategic development areas. The dynamics of China’s foreign direct investment flows in 2015–2024 were analyzed, and it was found that after a prolonged period of growth in foreign capital inflows in 2015–2021, a decline was observed in subsequent years, while the outflow of Chinese investments abroad became more sustained and active. Particular attention is paid to the regional and sectoral structure of investments. It was found that Asia continues to play a dominant role among sources of FDI into China, although the share of Europe, North America, and Latin America is gradually increasing. Changes in the ranking of the main countries donating investments to China were analyzed, and trends in the diversification of foreign capital sources were outlined. At the same time, it is shown that Chinese investments abroad are increasingly concentrated in strategic sectors, particularly in high technology, green energy, automotive manufacturing, infrastructure, energy, and the extractive industries. The latest trends in China’s international investment policy for 2024–2025 are described separately, including the liberalization of certain sectors to foreign capital, a focus on innovation, the growing role of greenfield investments in foreign expansion, and the increasing influence of geopolitical and security constraints. It is concluded that China’s current international investment policy is characterized by systematicity, strategic focus, structural restructuring, and a combination of economic, technological, and geopolitical priorities.