Chapter | China's Growing Role in World Trade | 2010

Facts and Fallacies about U.S. FDI in China

by Lee Branstetter and C. Fritz Foley


Despite the rapid expansion of U.S.-China trade ties, the increase in U.S. FDI in China, and the expanding amount of economic research exploring these developments, a number of misconceptions distort the popular understanding of U.S. multinationals in China. In this paper, we seek to correct four common misunderstandings by providing a statistical portrait of several aspects of U.S. affiliate activity in the country and placing this activity in its appropriate economic context.

Keywords: Expansion; Trade; Foreign Direct Investment; Mathematical Methods; Multinational Firms and Management; China; United States;


Branstetter, Lee, and C. Fritz Foley. "Facts and Fallacies about U.S. FDI in China." In China's Growing Role in World Trade, edited by Robert Feenstra and Shang-Jin Wei. University of Chicago Press, 2010.