This chapter explores the process of outward foreign direct investment (FDI) from China. In the late 1970s, China started to integrate into the world economy. It evolved from a state that merely attracted a high level of investment from abroad to one that has become a leading source of global investment capital. Chinese outward FDI to all regions of the world has since been developing. Among the leading sources of outward FDI from China are the financial services. China still promotes outward FDI, especially in research and development, production and marketing, and energy. Its comprehensive bilateral investment treaty (BIT) regime has drastically enhanced, with most recent BITs containing robust investor protection as well as investor-state arbitration provisions for a wide range of issues.
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