The Effects of Culture and Politics on Foreign Direct Investment and Sustainable Development in China: Some Research Hypotheses

摘要

Considering that China's GDP reached US$1,159 trillion in 2001 [making it the sixth largest economy in the world -(UN 2003)], and in addition the Chinese government has reformed its economy, liberated market forces and opened up many industries to foreign investors (Cui and Liu 2000), China should hold many attractions for foreign companies (Qu and Ennew, 2003). However, the resultant surge of inward Foreign Direct Investment (FDI) to China will inevitably have consequences for the natural environment, with a consequent effect upon the sustainability of the Chinese - and, indeed the global - economy. It is therefore important to consider the factors which might affect the degree of consideration given to sustainability in FDI decisions. This paper suggests some hypotheses for investigation, concerning the impact of cultural, political and financial factors on the sustainability of FDI projects in China.