THE GLOBALIZATION OF CHINESE STATE OWNED ENTERPRISES AND CHINESE FOREIGN DIRECT INVESTMENT IN THAILAND

Abstract: The intention of the present thesis is to describe Chinese outward direct investment on a macro level both as a global phenomenon and specifically in relation to Thailand. Thailand is considered a ?safe haven? for the Chinese in South East Asia. According to MOFCOM the country is the biggest recipient of Chinese FDI in the region.The motives and investment incentive factors of these investors are to a certain extent politically controlled and can also be said to follow a historical outline based on the changing political rationale for encoraging the creation of Chinese multinationals. The formation of economic blocs in an ever more globalized world have also affected China and is possibly guiding the strategies at an Asian level. Statistics in China have considerable discrepancies, using variables that are not readily comparable to other FDI statistics. These discrepancies have at times, especially in the Chinese media, crerated confusion and possibly also disbelief about the real size of the Chinese outward direct investment. The exact amount of Chinese investment and the number of Chinese funded enterprises active in Thailand today is not readily transparent. The monitoring and creation of follow-up procedures from both investor and host countries needs to be improved.