An Analysis on China's Policy towards Overseas Chinese Investments from 1950 to 1957

The author divides the evolution of China's policy towards Overseas Chinese investments during the period from 1950 to 1957 into three distinctive stages associated closely with China's general economic and political development.In the initial stage between 1950 and 1952,as China worked hard to revive its economy from the ravaging civil war,it welcomed Overseas Chinese investments in all of the economic sectors regardless of the patterns of ownership.This policy shifted during the second stage from 1953 to 1956 when China put forward the general line for its economic development within a framework based on public ownership.It encouraged Overseas Chinese to invest in joint state-private enterprises,which was a form of state capitalism.Eventually when China completed its socialist reform in 1957,it set up state-run investment companies to absorb Overseas Chinese capital,which successfully turned Overseas Chinese investors into interest earners that possessed no power of a shareholder.Though keeping the national goals in mind,the author maintains,China's policy-makers did seriously take Overseas Chinese interests into account in regard to their investments.