ABSTRACT
This chapter traces the outward investment trajectory of Zhejiang province. It argues that Zhejiang’s outward investment is based on business networks among enterprises which tend to invest abroad in groups. These cluster investments are a means for Zhejiang’s enterprises to reduce investments risks. By contrast and different compared to neighbouring Jiangsu province, provincial and local governments showed a less proactive stance in furthering the provincial internationalization, be it through inward investment or through outward investment. Yet, provincial government departments hold important information enterprises are dependent upon so that in that manner the provincial government is able to exert indirect influence over investment directions. Only in more recent years, Zhejiang’s government has become more active in directing the provinces’ overseas investment.
