Foreign direct investments have played a large role on China’s rapidly emerging economy. The author argues that foreign direct investments (FDI) in China have had no negative effects on the FDI flows to neighboring Asian countries. There was controversy in the 1990s when China was receiving a lot more FDI than surrounding countries such as Malaysia, Singapore and Thailand. The author argues that the scale of China’s economy justified its larger intake of FDI since its growing economy far outweighed those of less wealthy neighboring countries. Thus the amount of FDI was proportional to China’s scale. The author also denounced the belief that this was a zero-sum game, where more FDI to China meant less FDI to neighboring countries—in fact he states that it still benefitted the region. He also explains how China’s economic policies have favored FDI and is restructuring the regional economy. In order to demonstrate that China received proportional FDI, the article used economic data from an FDI Performance Index, which shows the ratio of FDI received by a country to its annual GDP. He collected this from the UN Conference on Trade and Development (UNCTAD). Thus he used publicly available data, which he collected available records. He also consulted the WTO and MOFTEC (Ministry of Foreign Trade and Economic Cooperation) for statistics. The article was well written and the author thoroughly explained his methods, making the research easily understandable.

Das, Dilip K. “Foreign Direct Investment in China: Its Impact on the Neighboring Asian Economies.” Asian Business & Management 6, no. 3 (2007): 285-301. doi:10.1057/palgrave.abm.9200225.