“Going Out”, Going Global, and the Belt and Road

Since liberalization in 1978, China has been a major destination for foreign direct investment. This changed after 1990 when the Chinese government encouraged Chinese enterprises to expand overseas. Factors driving this internationalization included the government’s objective of playing a larger international role and strengthening the international competitiveness of Chinese enterprises. State enterprises were the first to respond. This chapter describes the process of “going out” and the twin objectives of state enterprises to support the government’s strategy of extending its influence and to seek markets. The Bank of China’s expansion in Malaysia illustrates the first objective, ZTE’s internationalization the second. The recently launched Belt and Road Initiative will see an expanded role for Chinese state enterprises.