ABSTRACT

Introduction No country has influenced the direction of global political and economic affairs in the past decade as much as China, and no country is poised to do so in this decade-and this century-as much as China. Whether it is the future price of commodities, the trade balance of a multitude of the world’s countries, or even military spending among the world’s great powers, China has the ability to influence the budgets of scores of countries and billions of people’s lives beyond its borders. As such, it is useful to spend some time thinking about how China views the world and how the world views China. Doing so will also provide insight into the complexity of bilateral relations between nations, how the global political

and economic system functions, and how investors should think about investing in China. The following discussion about China’s orientation to geopolitics, FDI, the global economy, its own economy, and foreign investors, attempts to put a frame of reference around the ongoing debate about the wisdom of investing in China and doing business with Chinese companies.