The Study Of China’s ODIs’ Overseas Interests And Political Risks

Since the "Go Global" Strategy was formally announced in 2000, China’s Outward Direct Investment (ODI) grows at 47.75% annually, and now it is the third largest investment economy after the United States and Japan in flows (UNCTAD,2012). If the 1960s and the 1970s was the era of the United States in overseas investment and the 1980s and 1990s was the era of Japan, the first ten years of the 21st century is of great chances the era of China and its ODI. Chinese ODI plays important roles in global economies in the 21st century. With the involvement of Chinese ODI in economic globalization, there would be more conflicts and disputes between China and its ODI and other international actors and their ODIs. How are the Chinese enterprises’overseas expansions and what’s the view of the traditional developed economies on Chinese rapid expansions? What are Chinese enterprises looking for overseas? What kind of political risks we are facing now? And with the revitalization of trade protectionism in the background of the global recession, how can Chinese enterprises deal with the rising political violence? This article explores those questions based on the analysis of Chinese enterprises’overseas investment history and trends, China’s overseas interests and political risk management.This article argues that the "Catch Up" models of China’s overseas investments is influenced and supported by Chinese government and China’s SOEs are the leaders in this campaign, which is in favor of as well as doing harm to China’s overseas expansion. China and Chinese enterprises have their special overseas interests in both politics and economics. China is comparatively well organized in its overseas political risk management while the utilization of institutions should be promoted, which needs to be further discussed.