The Realization of a Strong Trade Power and China’s Direct Investment in SCO Countries
PDF

Keywords

Factor flow
Strong trade power
Shanghai Cooperation Organization
Investment risk

DOI

10.26689/pbes.v5i1.3708

Abstract

China’s path to becoming a strong trade power can be divided into three levels: the micro level of promoting factor cultivation, the meso level of achieving industrial dominance, and the macro level of participating in the establishment of the world system. As a feature of globalization, factor flow is the foundation and key to achieve the above three-level goals. In the first stage of reform and opening-up, China complied with the globalization characteristics of factor flow and gathered a large number of capital factors. It is now the second stage of reform and opening-up; that is, the stage of export-oriented investment. International investment may help in the path to become a strong trade power, or it may become an obstacle. The maximization of benefits and evasion of disadvantages are influenced by the grasp of investment risks. Therefore, special attention should be paid to identifying potential risks and controlling risks.

References

Chen Y, 1997, Multidimensional Signaling and Diversification. The RAND Journal of Economics, 28(1): 168-187.

Simoes AJ, Ventura J, Coelho LA, 2014, Foreign Direct Investment and Fiscal Policy – A Literature Survey, University of Evora, CEFAGE-UE Working Papers, Portugal.

Kamin SB, von Kleist K, 1999, The Evolution and Determinants of Emerging Markets Credit Spreads In The 1990s, BIS Working Papers 68, Bank for International Settlements.

Jennings M, 2016, The International Investment Regime and Investor-State Dispute Settlement: States Bear the Primary Responsibility for Legitimacy. Bus L Int’l, 17: 127.

Thomas J, Worrall T, 1994, Foreign Direct Investment and the Risk of Expropriation. The Review of Economic Studies, 61(1): 81-108.

Vandevelde KJ, 1998, The Political Economy of a Bilateral Investment Treaty. American Journal of International Law, 92(4): 621-641.

Tezera K, 2018, Dynamics of Identity Formation and Legal Pluralism: The Case of Customary, State and Religious Dispute Resolutions Among the Siltie People, Southern Ethiopia.