This book puts forward an institutional explanation of the recent dynamics of foreign direct investment (FDI) in China. It argues that the concentration of FDI in the Chinese manufacturing economy since the beginning of this century is largely the result of China’s entrepreneurial urban growth strategy, which was in turn motivated by the overall political and fiscal structures of China and was facilitated by urban land use under the manipulation of municipalities. By identifying the interactions between cross-border capital flow, national regulations and local responses, this book not only provides a fresh understanding of China’s FDI pattern from an urban perspective that has been rare among publications on similar topics, but also sheds light on the drivers underlying China’s rapid economic growth and its implications for sustainable development. It also stands as a useful reference for other countries and regions that plan to launch their own state-led development projects.
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