Chinese central government’ s Going Global Strategy

One important reason for this is the government’ s preferred model of
“market access in exchange for technology, ” i. E. Transfer of
technology through FDI in China is no longer delivering the
desired results. 4 Key obj ectives of the Going Global Strat-
egy include China’ s building its own “global players, ” i. E.
Transnational companies, ensuring the supply of rawmate-
rials and energy sources, promoting indigenous innovation
through research and development abroad and the acquisi –
tion of advanced technology. In the 21st century, China no
longer wants to be the “world’ s factory, ” but instead the
“world’ s research laboratory. ” The Chinese government
sees FDI in developed countries as an important first step
towards meeting this goal, with FDI in Europe and North
America a focus of the Going Global Strategy. In imple-
menting this strategy, the government significantly liber-
alized the rules for Chinese investment in foreign compa-
nies, including the gradual simplification of what was once
a complex approval process before such investments could
be made. This process culminated in 2014 in the introduc-
tion of a registration procedure for Chinese FDI of less than
US $300 million (Fig. 4) , based on the reforms announced
by Xi Jinping’ s government at the end of the previous year.
Thus, the conditions for Chinese FDI were significantly
improved with bureaucratic restrictions lifted.

Previously, for example, Chinese enterprises were at a disadvantage
over other bidders in transnational acquisitions because
they had to wait for Chinese government approval.