Overseas Chinese Invest Back in China
Mon, 05/24/2010 - 11:52 — bens
Expert Name:
Time Period:
Tigers and Sea Turtles
Quote:
Thousands of years of home-oriented culture is encouraging the overseas Chinese to invest back in China.
Flagged As Main Period Video:
NO
Video Transcript:
<p>In other countries, when people get rich, they try to transfer their money out of the country as you can see from Russia. But, thousands of years of home-oriented culture is encouraging the overseas Chinese to invest back in China. It’s every Chinese's belief. So, when China started to open up in 1980s, not many westerners believed: "Your policies are really open? You are really encouraging investment? You are really protecting foreign investments?" But overseas Chinese people, they believed first. So, if we look at the initial so-called "foreign investments," they were not really foreign investment. They were overseas Chinese's investments or investment from Hong Kong, or Taiwan. That amount of capital helped China to start. Also, their successful stories proved to other western investors that the Chinese government's opening-up policy was serious and workable. Then, you see the second round of investments, more from multinational companies, true foreign direct investment.</p>
description:
David Wei points out that the overseas Chinese played a crucial role in China's economic development by providing the first wave of investment and with their success, providing crucial confidence to prospective, but wary, foreign investors.
