Chinese companies have recently acquired or attempted to acquire famous firms such as IBM, Unocal, and Maytag in western markets, raising strong interest and sometimes resistance. What are the motivations behind these overseas investments? Will Chinese companies become dominant global players? What types of foreign investments will make sense and what modes of foreign entry should they use? What obstacles will they face?

Discusses the role of foreign direct investment in China as a major driver for the high growth observed in the country since 1978.

Explores the interactions between China and its neighbors, and considers how those interactions will change as China emerges on the world economic stage in the coming years.