ABSTRACT

This chapter focuses on the evidence of regional concentration of investments from particular sources, using China as an example. It examines the emerging concentration of South Korean investments in north eastern China. The chapter discusses the motivations and modes of operation of overseas Chinese investors. The Diaspora Chinese entrepreneur can take on different roles and identities in order to gain social and political stability and business advantages. The chapter utilizes data on both ‘agreements’ and actual or ‘realized’ investments published in China, data on officially sanctioned investments published in the newly industrialized economies, as well as data derived from reports in newspapers published in the latter countries. The chapter provides an overview of foreign investments in China for the period since 1979 when the economic reforms were first announced. The first economic reform programs announced in 1978/79 were timid in that the localities where foreign investments were allowed and the sectors in which they could invest were strictly limited.