The impact of US FDI in China
Michael Enright
05 July 2017
05 July 2017
Foreign direct investment
The Hinrich Foundation commissioned Professor Michael J. Enright to lead a major research project identifying the impact of foreign direct investment on China’s economic development.
One of the most important features of China’s economic emergence has been the role of foreign investment and foreign companies. The importance goes well beyond the USD 1.6 trillion in foreign direct investment that China has received since it started opening its economy.
Using the tools of economic impact analysis, the author estimates that around one-third of China’s GDP in recent years has been generated by the investments, operations, and supply chains of foreign invested companies.
In addition, foreign companies have developed industries, created suppliers and distributors, introduced modern technologies, improved business practices, modernized management training, improved sustainability performance, and helped shape China’s legal and regulatory systems.
These impacts have helped China become the world’s second largest economy, its leading exporter, and one of its leading destinations for inward investment.
The book provides a powerful analysis of China’s policies toward foreign investment that can inform policy makers around the world, while giving foreign companies tools to demonstrate their contributions to host countries and showing the tremendous power of foreign investment to help transform economies.
© The Hinrich Foundation. See our website Terms and conditions for our copyright and reprint policy. All statements of fact and the views, conclusions and recommendations expressed in this publication are the sole responsibility of the author(s).
Additional resources
Phase 1: The Impact of Foreign Investment on China from Enright, Scott & Associates
Phase 3: The Impact of Foreign Investment on China from Enright, Scott & Associates
FDI in China infographic (English version)
FDI in China infographic (Chinese version)
FDI in China fact sheet (English version)
FDI in China fact sheet (Chinese version)
Media interviews with book author Professor Michael Enright
Recaps of book launch events and discussions
Message contents