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China’s four decades of economic reform have been aimed at liberalising markets, upgrading the industrial structure, enhancing enterprises’ competitiveness and integrating China into the global economy. China’s foray into outward direct investment (ODI) took shape gradually. In 2016, China became the world’s secondlargest outward investor after the United States, with $196.2 billion of ODI flows.1

Outward direct investment: Restricted, relaxed and regulated stages of development