The Impact of Foreign Direct Investment to China on Foreign Direct Investment to Other Countries. ESRI Research Bulletin 2012/4/3

China has recently become a leading destination for foreign direct investment (FDI). The surge of FDI to China has followed its opening to the world economy and selective easing of capital controls. While the main motivation driving the increased inflows of foreign investment to China has been the availability of a large pool of low-cost labour, in recent years there has been a shift of inward FDI in China towards high-tech industries and services