Press release -

ifo Survey: Foreign Direct Investment from China Is Viewed More Critically Than from Other Countries

Many countries view foreign direct investment (FDI) from China more critically than they do FDI from other countries. This is the result of the World Economic Survey conducted by the ifo Institute among 1,012 economists worldwide. Respondents were particularly negative in the United States and the European Union, where 78.4 percent (US) and 66.2 percent (EU) rated FDI from China as “slightly more negative” or “considerably more negative” than FDI from other countries.  Advanced economies are most concerned about technology transfer (74 percent) and possible Chinese government influence (69 percent).

Across all regions, 41.7 percent of respondents rated FDI from China as “slightly more negative” than investments from other countries. Fully 15.3 percent assessed it as “considerably more negative.” Meanwhile, 23.3 percent of respondents were indifferent about FDI from China compared to FDI from other countries, 8.4 percent saw it as “slightly more positive,” and just 3.0 percent assessed it as “considerably more positive.” The response from 8.3 percent was “Don’t know.” Overall, the more negative perception prevailed in 74 percent of the 81 countries in which experts were interviewed.

While the sum of the two negative categories is 57.0 percent worldwide, it is 78.4 percent in the US and 66.2 percent in the EU – significantly higher. The most critical voices in individual countries came from Australia, Canada, Belgium, France, Germany, and the Netherlands, each coming in at over 81 percent. The figure is 62.5 percent in Japan and 72.6 percent in “other advanced economies” such as New Zealand, Norway, Switzerland, and Taiwan.

Experts from emerging and developing countries report a less critical climate for FDI from China.  For example, the response categories “slightly more positive” and “considerably more positive” totaled 33.0 percent in sub-Saharan Africa and 31.8 percent in the CIS states. Many other experts answered “Not different” or “Don’t know.” In 10 percent of the countries – namely Armenia, Azerbaijan, Ecuador, Egypt, Greece, Latvia, Nigeria, and the Philippines – the experts surveyed report that there is no difference. In 16 percent of the countries, including Pakistan, Georgia, Turkey, and Russia, economists speak of a more positive perception of FDI from China than from other countries.

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Harald Schultz

Harald Schultz

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