Moving from Open Door to Go Global: China goes on the world stage

Abstract

This contribution traces a relatively recent phenomenon: the development of Chinese Direct Overseas Investments. China's Go Global policy, which encourages Chinese enterprises to put themselves in the global competition through an active internationalisation process, was officially announced in 2000. Less known than the Open Door policy that led China to be one of the world's largest FDI recipients, this phenomenon, still small in comparison to the total global value, is interesting for its trend and skyrocketing growth. The paper not only sheds light on the five stages of the gradual development of Outward Foreign Direct Investment (OFDI), but also deepens several interventions launched during the entire year 2006. Relevant historical series of flows and stocks are also presented. Besides highlighting the 'Chinese Champions' of the global market, main forms of internationalisation and main reasons are discussed, as well as pros and cons of the process.