Cultural Determinants of Chinese Internationalization in the Form of FDI

Abstract:

The traditional sources of investment capital such as the EU countries, the United States and Japan, have been enhanced at the turn of the 21st century by expansive sources of the second Asian generation and China, which for over three decades has been considered as a base for cheap and simple production. The participation of these countries in the globalization process resulted in implementing the far-reaching reforms (Beijing Consensus), which not only diametrically changed the map of capital flows but also transformed the growth poles of the modern world. China finally regained the power, which the country held in the 18th century, thus the development of the Chinese Renaissance. Although quite commonly FDI serve as a desirable source of external power supply, the active role of China as an investor have raised great concerns, because Chinese FDI are often considered as Trojan horses in host economies. The evident relationship between government authorities providing companies with financial support, the indirect risk of pursuing political goals, involvement in large projects like One Belt One Road, unequal access of western companies to the Chinese market are those main reasons.