Recent Strong Growth of Overseas Chinese Investments and Its Profound Impact

Overseas Chinese investment in China has undergone a U-turn since the 1980s.It accounted for about 80% of China's foreign direct investment in the 1980s,but slid to 34.4% by 2005,and then rose to 66% by 2011.In contrast,non-Chinese foreign investments,including those from Americans,Europeans,Japanese,and Koreans,increased significantly after China joined the WTO in 2001 but soon rapidly declined.The authors of this article analyze this phenomenon,and conclude that the superiority of Overseas Chinese entrepreneurs over their non-Chinese competitors in foreign direct investment is attributable to their adaptability to China's economic transformation,their efforts in business localization,and their expansion into new industries of high technology.