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2017-04-13

On China's overseas investments in developing countries

Comments on David Dollar, Brookings "The future of Chinese investment", 11/04/2017

What is the criteria for investment? It would be the return to investment, or risk adjusted return to investment. Here one may find that different investors may derive different returns for the same project, potentially due to different assessment of the risks and potential returns. There are uncertainties in risks and returns of any investment, including international investments.

The second point is potentially the differences in views towards some standards, possibly between the developed and the developing worlds.

Thirdly, is the author suggesting that the US may consider to give up its World Bank leader position? The reality is likely that it will not, at least not in the foreseeable future.

But seriously, China's investment in those countries will boost the economic welfare of those countries.

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