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Reflections on China's Open Policy Towards Foreign Direct Investment

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  • Roger Hayter
  • Sun Sheng Han

Abstract

HAYTER R. and HAN S. S. (1998) Reflections on China's open policy towards foreign direct investment, Reg. Studies 32 , 1-16. China's open policy of kaifang zhengce assumes that foreign direct investment is an essential mechanism by which technological and other forms of know-how regarding best practices can be transferred into the Chinese economy. Yet, this transfer cannot be assumed to the extent that the know-how desired by China simultaneously defines the competitive advantage of multinational corporations. Kaifang zhengce is China's geopolitical strategy to resolve this paradox. Its key features involve combining an explicit spatial strategy within China and reliance on investment by overseas Chinese, especially firms based in Hong Kong. Yet, these firms are not foreign, as conventionally considered, and their contribution to the modernization of China is greater than supposed. HAYTER R. et HAN S. S. (1998) Des reflexions sur la politique d'ouverture de la Chine a l'investissement etranger direct, Reg. Studies 32 , 1-16. La politique d'ouverture de la Chine, autrement dit kaifang zhengce , suppose que l'investissement etranger direct constitue un element cledu mecanisme par lequel le savoir-faire technologique et d'autres formes de savoir-faire relatif aux usages courants s'inserent dans l'economie chinoise. Toujours est-il que cette insertion ne peut pas etre supposee dans la mesure ou le savoir-faire que souhaite la Chine delimite simultanement l'avantage competitif des societes multinationales. Kaifang zhengce est la strategie geopolitique de la Chine qui vise a resoudre ce paradoxe. Ces aspects primordiaux necessitent la combinaison d'une politique d'amenagement du territoire explicite a l'interieur de la Chine et d'une dependance de l'investissement par des Chinois a l'etranger, surtout par les entreprises basees a Hong Kong. Cependant, de telles entreprises ne sont pas etrangeres, dans le sens stricte du terme, et leur contribution a la modernisation de la Chine s'avere beaucoup plus signifiante que l'on n'avait suppose. HAYTER R. und HAN S. S. (1998) Betrachtungen uber Chinas Politik der offenen Tur gegenuber Direktinvestierungen des Auslandes, Reg. Studies 32 , 1-16. Chinas Politik der offenen Tur oder kaifang zhengce nimmt an, dass Direktinvestierung aus dem Ausland ein wesentlicher Mechanismus ist, durch den der chinsischen Industrie technologische und andere Formen des Know-how bezuglich bester Vorgehensweisen einverleibt werden konnen. Doch kann diese Ubertragung nicht in dem Masse erwartet werden, das das von china erstrebte Know-how zugleich auch den Wettbewerbsvorteil multinationaler Korporationen bestimmt. Kaifang zhengce ist Chinas geopolitische Strategie zur Losung dieses Paradoxes. Seine Hauptzuge enthalten die Kombination einer ausgesprochen raumlich bestimmten Strategie innerhalb Chinas und ein Verlassen auf Investierungen von Auslandschinesen, besonders auf in Hong Kong ansassige Firmen. Doch fallen diese Firmen nicht unter die ubliche Definition von Auslandern, und ihr Beitrag zur Modernisierung Chinas ist grosser, als gemeinhin angenommen wird.

Suggested Citation

  • Roger Hayter & Sun Sheng Han, 1998. "Reflections on China's Open Policy Towards Foreign Direct Investment," Regional Studies, Taylor & Francis Journals, vol. 32(1), pages 1-16.
    • Handle: RePEc:taf:regstd:v:32:y:1998:i:1:p:1-16
    DOI: 10.1080/00343409850123585
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