Columbia International Affairs Online: Policy Briefs

CIAO DATE: 07/2009

The Internationalization of Chinese and Indian Firms: Trends, Motivations and Policy Implications

Suma Athreye, Sandeep Kapur

January 2009

United Nations University

Abstract

The rapid rise in the overseas investments of Indian and Chinese firms has attracted widespread attention in recent years. To a large extent, the growing internationalization of these emerging economies has been driven by a search for resources, technology and related assets. What are the implications of this for foreign direct investment policy in both the source and the recipient countries? Furthermore, how will the ongoing global financial crisis affect the continued expansion of multinationals from the two countries, which have relied on international markets to fund their investments?