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China and its Inward Foreign Direct Investment

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What could be the reasons for China not having an unusual large amount of inward FDI given their size (large market) advantage and emerging economy? Can this be traced to their cultural dimensions that are sharply in contrast to Western cultures or other macro-economic reasons like government regulations or market protection?

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Solution Summary

This solution discusses the reasons China doesn't have an unusually large amount of inward FDI given their size advantage and emerging economy. It also discusses whether this can be traced to their cultural dimensions that are sharply in contrast to Western cultures or other macro-economic reasons.

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In spite of China's size (large market) advantage and emerging economy, it does not have an unusual large amount of inward FDI because first and foremost, they have had little success with outward FDI especially within the U.S. This fact makes them thus feel that they may not want to permit large number of foreign investors within China due to suspicion why ...

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