On the global COVID-19 pandemic and China's FDI

The global COVID-19 pandemic has generated serious challenges for the world economy, including cross-border foreign direct investment (FDI). China's inward FDI (IFDI) and outward FDI (OFDI) are also facing unprecedented risks and challenges. This paper first clarifies the timelines of the pandemic evolving in China, the US, and the rest of the world. It then reflects on China's past development process of IFDI and OFDI, noting the growth of IFDI and highlighting the risks and challenges for OFDI during and after the pandemic. Empirical evidence for the impact of COVID-19 on FDI is set out. Policy recommendations are then made regarding China's latest development strategy using the so-called dual circulation to sustain its economic growth with respect to cross-border FDI. (C) 2021 Elsevier Inc. All rights reserved.

Automated summary

This paper examines the impact of the global COVID-19 pandemic on the world economy and foreign direct investment, with a focus on China's development of inward and outward FDI and the challenges it faces. Policy recommendations are proposed for sustaining economic growth through cross-border FDI amid the pandemic.