silk road led to industrial projects loan growth during 2017 driven by heavy

Silk road led to industrial projects loan growth

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silk road led to industrial projects - loan growth during 2017 driven by heavy investment in Asian countries - Chinese government incentive for “One Belt, One Road” plays an important role in international acquisition deals
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- China led establishment of Asian infrastructure Investment bank (AIIB) – 57 founding member countries, in 2016, to provide funding that promotes regional collaborations, enhances economic integration’ o Preparation fund for less developed countries - “Made in China 2025” – national plan to upgrade manufacturing with innovative tech - move from production centre to innovation centre with high-quality home-made products - government blueprint for industry upgrading = innovation and econ collaboration with other nations Conclusion - Capital flows promote spill over - MNE expand territory through FDI - China developing its economy and integrating into the global market - OFDI from China increasing significantly - “going out” – stimulate active foreign involvement and investment from China - “One belt, one road” – initiative to improve innovation and international collaboration - Increasing trend of international M&A o Enter foreign markets o Access advanced tech o Gradually gain global competitiveness Required Foreign Direct Investment – the China story - China has been successful in mobilising inward FDI o Investment opportunities o Sheer size o Growing domestic market - Inbound FDI has been crucial to China’s economic development and export success o Higher FDI correlated to higher productivity increases o FDI catalysed economic reform o Supported record-high growth - FDI policies evolved alongside economic development - Institutional development not yet seen, was intended to happen at the same time as economic development – gradual approach o Liberalisation has been gradual and prudent o WTO (2001) = commitment to services liberalisation o Open to FDI but not necessarily to institutional changes to align with developed nations o Risk of negative externalities (enviro damage) needs to be balanced with positive externalities caused by the same action (FDI) Supplementary The determinants of Chinese outward FDI Supplementary Chinese outward direct investment research: theoretical integration and recommendations Supplementary Chinese Multinationals going global (interview) Week 8
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Required China’s innovation landscape - Tech development is important to fuelling the next stage of economic growth - Patents and Innovation o 2006 – Chinese patent system began granting patent applications - Private, Domestic Growth o Increase in patents coincides with increased FDI despite limited IP effectiveness o IP protection improvements Clarification of laws Better alignment with international standards Increased domestic investment in research and development - Geographic Diffusion o Scientific and technological of key regions (listed below) have diminished over time relative to central interior regions Shaanxi Guangdong Shanghai Tianjin
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