What will an appreciation of China's currency do to inward and outward FDI?

What will an appreciation of the Chinese currency do to China's direct investment? The discussion so far has been almost exclusively about the impact on China's trade balance. This article argues that it is at least as important to see what effect it may have on the country's inward foreign direct investment, which plays such a crucial role in China's economic development, and its outward FDI, which is receiving increased attention worldwide. 1