Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2021 Jun:74:101300.
doi: 10.1016/j.asieco.2021.101300. Epub 2021 Mar 18.

On the global COVID-19 pandemic and China's FDI

Jing Fang  1 , Alan Collins  2 , Shujie Yao  1   3
Affiliations

On the global COVID-19 pandemic and China's FDI

Jing Fang et al. J Asian Econ. 2021 Jun.

Abstract

The global COVID-19 pandemic has generated serious challenges for the world economy, including cross-border foreign direct investment (FDI). China's inward FDI (IFDI) and outward FDI (OFDI) are also facing unprecedented risks and challenges. This paper first clarifies the timelines of the pandemic evolving in China, the US, and the rest of the world. It then reflects on China's past development process of IFDI and OFDI, noting the growth of IFDI and highlighting the risks and challenges for OFDI during and after the pandemic. Empirical evidence for the impact of COVID-19 on FDI is set out. Policy recommendations are then made regarding China's latest development strategy using the so-called dual circulation to sustain its economic growth with respect to cross-border FDI.

Keywords: COVID-19; China; Dual circulation; FDI; OFDI.

PubMed Disclaimer

Figures

Fig. 1
Fig. 1
The evolution process of the COVID-19 pandemic with changing epicenters.
Fig. 2
Fig. 2
Cumulative confirmed and active cases (1,000) and case-fatality rates (%) of COVID-19 in China. Note: 1. Active cases are calculated from cumulative confirmed cases minus recovered cases and deaths. 2. Case-fatality rates are the ratio of the number of total deaths divided by the cumulative number of confirmed cases on a given day, which changes over time. 3. The abscissa records dates in YYYYMMDD format; for example, 20200115 denotes January 15, 2020.
Fig. 3
Fig. 3
Cumulative confirmed and active cases (1,000) and case-fatality rates (%) of COVID-19 in the US. Notes: 1. Detailed definitions are given at the notes to Fig. 2. 2. The number of recovered cases in the US is unavailable from mid-December 2020.
Fig. 4
Fig. 4
Cumulative confirmed and active cases (1,000) and case-fatality rates (%) of COVID-19 in India, Brazil and Russia. Notes: Detailed definitions are given in the notes to Fig. 2.
Fig. 5
Fig. 5
GDP ($trillion, current prices) and growth rate (%) of China, 1990-2019.
Fig. 6
Fig. 6
IFDI ($million, current prices) and world ranking of China, 1990–2019. Note: The numbers on the graph are annual growth rates.
Fig. 7
Fig. 7
Monthly IFDI inflows and year-on-year growth rates ($billion, %) of China, 2010–20. Note: The abscissa value denotes month-year, for example, Jan-10 denotes January, 2010.
Fig. 8
Fig. 8
Chinese OFDI ($million, current prices) and its world ranking, 1990–2019. Note: The numbers attached to the bars are China’s OFDI shares in the total global FDI of the respective years.
Fig. 9
Fig. 9
Quarterly outflows and year-on-year growth rates ($billion, %) of China’s OFDI, 2015-20.
Fig. 10
Fig. 10
Monthly outflows and year-on-year growth rates ($million, %) of China’s OFDI to the countries along the B&R, 2014–20. Notes: The abscissa value denotes month-year; for example, Apr-14 denotes April 2014.
See this image and copyright information in PMC

References

    1. Anwar S., Sun S. FDI and market entry/exit: Evidence from China. Journal of Asian Economics. 2012;23(5):487–498.
    1. Balasubramanyam V.N., Salisu M., Sapsford D. Foreign direct investment and growth in EP and IS countries. The Economic Journal. 1996;106(434):92.
    1. Buckley P.J., Clegg L.J., Cross A.R., Liu X., Voss H., Zhang P. The determinants of Chinese outward foreign direct investment. Journal of International Business Studies. 2007;38:499–518.
    1. Chenery H.B., Strout A.M. Foreign assistance and economic development. The American Economic Review. 1966;56(9):679–733.
    1. Cheng L.K., Kwan Y.K. What are the determinants of the location of foreign direct investment? The Chinese experience. Journal of International Economics. 2000;51(2):379–400.

LinkOut - more resources