This book explores the characteristics of China's outward foreign
investment, its motivation, its sector distribution, and its
geographical distribution in order to illustrate the current
pattern of 'merchant-state dualism' in China's overseas foreign
direct investment. Merchant-state dualism is a hybrid relationship
between the state and society that maintains state control over
merchants, while giving them some autonomy. By investigating the
interactions between business and government elites to determine
Chinese outward foreign investment, and by exploring the reasons
for selecting certain foreign investments in light of internal
political and economic concerns and the external effect of
investing in politically sensitive countries, the book highlights
the political underpinnings and calculations of China's foreign
investment. It thus sheds light on current merchant-state dualism
by concluding that merchant-state dualism is the most suitable
model for explaining contemporary Chinese government-business
relations.
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