Foreign direct investment
Developing China: The Remarkable Impact of 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.
The power of FDI
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 development of China’s economy has achieved a great success since the onset of its program of economic reform and opening. Foreign direct investment made a significant contribution to this success. This has been accounted by numerous works home and abroad. Professor Enright makes a comprehensive assessment on the achievements that China made in attracting foreign investment and the positive contributions of foreign investment to the development of China’s economy, with scientific and systematic analysis, with the innovative application of the economic impact analysis techniques, which is for the first time used in such kind of analysis, with typical corporate and city case studies, and with the tests on enlarged datasets and revised models based on existing econometric research. As said in the book, there are regional differences and time period differences in the impact of foreign investment on China’s economy. Foreign investment is important to China’s economy, in the past, at present, and in the future. Summarizing the past enables us to be better prepared for the future. China is deepening its reform in all aspects and expanding its open up scope. China’s usage of FDI also comes into a new development period. The Chinese version of this book, published at this moment, is of specific value for officials, business people, analysts, and others to read and to think.”
— Li Gang, Vice President, Chinese Academy of International Trade and Economic Cooperation, MOFCOM
“Developing China is the most comprehensive study of the role of foreign invested enterprises in China’s economic transformation available. It analyzes the evolution of government policy toward foreign investment and, more importantly, provides a path breaking analysis of the contribution of foreign firms to the growth of output and employment in China.”
— Nicholas Lardy, Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics
In the news
Media interviews with book author Professor Michael Enright
Michael J. Enright, author of “Developing China: The Remarkable Impact of Foreign Direct Investment”, explains why China still needs foreign direct investment (FDI).
Article highlights findings from “Developing China: The Remarkable Impact of Foreign Direct Investment” by Michael J. Enright.
Professor Michael J. Enright, author of “Developing China: The Remarkable Impact of Foreign Direct Investment,” discusses China’s economy and rising PPI.
Michael J. Enright explains how foreign companies can better make the case for foreign direct investment (FDI) in China.
Wall Street Journal’s China Real Time Report highlights author Michael J. Enright’s research on the impact of foreign direct investment (FDI) on China’s economic development.
Author Michael J. Enright shares findings from “Developing China: The Remarkable Impact of Foreign Direct Investment” in an interview with the South China Morning Post.
BBC China interview Professor Michael J. Enright about his new book “Developing China: The Remarkable Impact of Foreign Direct Investment”.
Professor Michael J. Enright discusses his book, “Developing China: The Remarkable Impact of Foreign Direct Investment".
Center for Strategic and International Studies (CSIS) interviews Michael J. Enright about his new book “Developing China: The Remarkable Impact of Foreign Direct Investment”.
14 September 2017
On September 10, 2017, the Hinrich Foundation welcomed the East-West Center’s visiting US journalism fellows to a special briefing event as a part of their 2017 China-United States Journalists Exchange program.
25 July 2017
The Chinese-language edition book launch for "Developing China: The Remarkable Impact of Foreign Direct Investment" was held in Beijing on 25 July 2017.
14 July 2017
On July 13, 2017, author Michael J. Enright presented findings from a ground-breaking new white paper report on the impact of US foreign direct investment (FDI) and US companies on China’s economy.
16 November 2016
The Hinrich Foundation presented its new book “Developing China: The Remarkable Impact of Foreign Direct Investment” by Michael J. Enright on Tuesday, November 15th at a luncheon event in Hong Kong.
27 September 2016
The Hinrich Foundation launched its new book “Developing China: The Remarkable Impact of Foreign Direct Investment” by Michael J. Enright on Tuesday, September 27th at the Center for Strategic and International Studies (CSIS) headquarters in Washington, D.C.