Chinese Capital Flows, Friend or Foe
摘要
In this chapter, we discuss capital outflows in the context of overseas investments including direct investment, lending, portfolio investment and arbitrage activities by Chinese companies and investors. We shall also address the issue of illegal capital outflows that are not driven by the same forces behind the investment and lending decisions. Crucially, a new trend has emerged since 2022 with China turning into a foreign direct investment net exporter for the first in its economic history.