ABSTRACT
This chapter examines the going out strategy and assesses its impact on the patterns and performance of China's outbound direct investment (CODI) in the recent decade. In later 2004, the government passed the main document that codified the state regulation of CODI: the decision on China's Outbound Investment passed by the State Council. The chapter explains three barriers due to the Chinese strong state since the late 1990s: CODI policies, state-owned enterprises (SOE) dominance within China, and being undercut by state affiliated enterprises in the overseas market. It explicates institutional and informal favors granted to China's SOEs at the expense of private companies. The chapter examines three questions on contemporary political economy in China: First, is the Chinese state strong; Second, is the Chinese state helping CODI; is CODI improving efficiency in China. Thus, CODI so far is an expansion and extension of imbalanced development within China.
