China Uses State Firms to Promote Foreign Policy Through FDI, Researchers Say
A Cambridge University Press research paper published this month explores how the Chinese government exercises influence over Chinese firms that conduct foreign direct investment. The paper, which is behind a paywall, shows that China uses state-owned firms to pursue foreign…
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investment and to “promote” the country’s foreign policy objectives. The U.S. has strengthened and revised its Committee on Foreign Investment in the U.S., partly to better scrutinize attempts by Chinese companies to acquire sensitive U.S. technologies through foreign direct investment (see 2001140060). More changes may be coming (see 2103030057, 2107230027 and 2103120042).