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China's outward foreign direct investment
Authors:Wei He  Marjorie A. Lyles
Affiliation:a College of Business, Indiana State University, 800 Sycamore Road, Terre Haute, IN 47809, U.S.A.
b Kelley School of Business, Indiana University, 801 West Michigan Street, Indianapolis, IN 46202-5151, U.S.A.
Abstract:China's outward foreign direct investment (FDI) is steadily increasing. The United States is now a key target for China's outward FDI, and the response by the American public tends to fall at opposite ends of the spectrum: fever or fear. Chinese FDI in the United States faces challenges posed by its liability of foreignness in political, cultural, marketing, and technological aspects. Utilizing mini case studies, we herein examine the polarized responses to Chinese outward direct investment, its history, and the challenges faced by Chinese multinational corporations operating in or attempting to enter the U.S. market. Finally, strategy suggestions are proposed.
Keywords:China   United States   Outward foreign direct investment   Liability of foreignness
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