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Goodbye China: What Do Fewer Foreigners Mean for Multinationals and the Chinese Economy?

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Listed:
  • Frank Bickenbach

    (Kiel Institute for the World Economy (IfW))

  • Wan-Hsin Liu

    (Kiel Institute for the World Economy (IfW))

Abstract

The number of foreigners living in China is very low in international comparison and has further declined recently. While the strict COVID-19-related travel restrictions played a major role in this decline, there are indications that the decline started in part before the pandemic and may well continue once the pandemic-related restrictions are lifted. Against this background, this article discusses the economic challenges that the reduction in the number of foreigners is causing for Western multinationals operating in China and to the Chinese economy more generally. The consequences could spill over to the world economy and reinforce economic and technological decoupling tendencies between China and the West.

Suggested Citation

  • Frank Bickenbach & Wan-Hsin Liu, 2022. "Goodbye China: What Do Fewer Foreigners Mean for Multinationals and the Chinese Economy?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(5), pages 306-312, September.
    • Handle: RePEc:spr:intere:v:57:y:2022:i:5:d:10.1007_s10272-022-1075-0
    DOI: 10.1007/s10272-022-1075-0
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    References listed on IDEAS

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    1. Annekatrin Niebuhr, 2010. "Migration and innovation: Does cultural diversity matter for regional R&D activity?," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 563-585, August.
    2. Cuadros, Ana & Martín-Montaner, Joan & Paniagua, Jordi, 2019. "Migration and FDI: The role of job skills," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 318-332.
    3. Peter Huber & Klaus Nowotny, 2020. "Risk aversion and the willingness to migrate in 30 transition countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1463-1498, October.
    4. Andreas Hatzigeorgiou & Magnus Lodefalk, 2021. "A literature review of the nexus between migration and internationalization," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(3), pages 319-340, April.
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    Cited by:

    1. Stamer, Vincent, 2023. "Deutsche Exporte ausgebremst: China ersetzt "Made in Germany"," Kiel Policy Brief 167, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    J61; F23;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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