Riassunto analitico
The study explores the drivers of Chinese business expansion strategy in Pakistan, EU andAfrica. Particularly, the work examines the drivers and motives of Chinese global expansion Pakistan, developing regions like Africa, Asia and countries in the European Union. China has different drivers and motives for investing in different regions of the world. Emerging economies are known for cheap production in terms of labour at the early stage of economic growth. Also, they have cost advantage over developed economy industries in production serving domestic market when their cheap labour production is merged with lopsided costs of internationalisation. China's outward FDI in the year 2020 hit $153.71 billion, with an increase of 12.3% year-on-year and topping the first place globally for the first time ever. It is worthy of note that while some western countries spent nearly 200 years to achieve industrialisation results, China only spent two decades from the year 1990’s to achieve this.Chinese capital stock of FDI amount to $2.58 trillion by the end of year 2020, coming afterUS and the Netherlands. One of the notable projects undertaken by Chinese in Pakistan is theChina-Pakistan Economic Corridor (CPEC), prominent in the investment corridors forChina’s infrastructural projects comprising ports, power plants, roads, and fiber optic cables with at least $25 billion in total investment. In the case of developed countries, Chinese motives of expansion is not dominated by seeking natural resource or trade related purpose rather it is more concerned with strategic asset-seeking and market efficiency objectives. In addition to that, for developing countries three motives are identified when it comes to Chinese economic partnerships, these are; access to natural resources; export markets for Chinese manufactured goods; and sufficient economic and political stability for China to safeguard its citizens and pursue its economic and commercial interests. Through this driver, China has been able to make huge investments and FDI in both developed and developing countries through its diplomatic and economic partnership with them. The study also analyses the various Chinese investments, FDI and projects in Pakistan, EU, and Africa. In addition this work employs secondary data for graphical representation sourced from World Bank,Pakistan Bureau of Statistics and Johns Hopkins University SAIS China-Africa ResearchInitiative Prepared Database.
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Abstract
The study explores the drivers of Chinese business expansion strategy in Pakistan, EU andAfrica. Particularly, the work examines the drivers and motives of Chinese global expansion Pakistan, developing regions like Africa, Asia and countries in the European Union. China has different drivers and motives for investing in different regions of the world. Emerging economies are known for cheap production in terms of labour at the early stage of economic growth. Also, they have cost advantage over developed economy industries in production serving domestic market when their cheap labour production is merged with lopsided costs of internationalisation. China's outward FDI in the year 2020 hit $153.71 billion, with an increase of 12.3% year-on-year and topping the first place globally for the first time ever. It is worthy of note that while some western countries spent nearly 200 years to achieve industrialisation results, China only spent two decades from the year 1990’s to achieve this.Chinese capital stock of FDI amount to $2.58 trillion by the end of year 2020, coming afterUS and the Netherlands. One of the notable projects undertaken by Chinese in Pakistan is theChina-Pakistan Economic Corridor (CPEC), prominent in the investment corridors forChina’s infrastructural projects comprising ports, power plants, roads, and fiber optic cables with at least $25 billion in total investment. In the case of developed countries, Chinese motives of expansion is not dominated by seeking natural resource or trade related purpose rather it is more concerned with strategic asset-seeking and market efficiency objectives. In addition to that, for developing countries three motives are identified when it comes to Chinese economic partnerships, these are; access to natural resources; export markets for Chinese manufactured goods; and sufficient economic and political stability for China to safeguard its citizens and pursue its economic and commercial interests. Through this driver, China has been able to make huge investments and FDI in both developed and developing countries through its diplomatic and economic partnership with them. The study also analyses the various Chinese investments, FDI and projects in Pakistan, EU, and Africa. In addition this work employs secondary data for graphical representation sourced from World Bank,Pakistan Bureau of Statistics and Johns Hopkins University SAIS China-Africa ResearchInitiative Prepared Database.
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