Antecedents and motives

This review highlights the recurring theme of ‘antecedents and motives’ in the context of Chinese OFDI. It encompasses topics such as economic and institutional factors, motives, and cultural and informal influences. Within this category, we have identified 18 studies pertaining to NRR global regions (e.g., Latin America and the Caribbean, Sub-Saharan Africa, Central Asia) and individual countries (e.g., Canada, Zambia, Peru). Research in this field explores the economic and institutional factors, cultural and informal influences, as well as various motivations that prompt companies to overcome geographical, cultural, and institutional obstacles in order to acquire desirable resources. Our findings show that studies on Chinese investment in NRR locations have predominantly concentrated on institutional antecedents (such as the host country’s institutions, government agencies, and support from the home government) and the nuances of natural resource-seeking motivations driving Chinese OFDI in NRR countries (such as securing a reliable supply, achieving a dominant position compared to other investors, and gaining control over strategic resources).

The research in this field underscores the critical role that both the home and the host country’s economic and institutional backgrounds, as well as the distance between them, play in facilitating Chinese foreign investment overseas. The literature emphasizes the importance of both the home countries (Orazgaliyev, Reference Orazgaliyev2020) and the host countries (Kragelund, Reference Kragelund2009) in establishing institutional policies that foster successful partnerships between countries. For instance, Orazgaliyev (Reference Orazgaliyev2020) demonstrated that home government support and host country institutions greatly impact Chinese MNEs’ ability to successfully enter the natural resource sectors in developing countries such as Kazakhstan. Shapiro, Vecino, and Li (Reference Shapiro, Vecino and Li2018) conducted research on Chinese OFDI in Latin America. Their findings revealed that state-supported development loans provided by China to host countries enabled the Chinese government to establish commercial and diplomatic relationships with the host government. These loans also facilitated Chinese firms’ access to natural resources in environments with high political risk. Additionally, Mohan and Lampert (Reference Mohan and Lampert2013) emphasized the pivotal role of home-country actors in negotiating, shaping, and even driving Chinese engagements at various levels within the context of Chinese OFDI.

Furthermore, scholars have argued that in developed NRR economies, the presence of branches of local investment promotion agencies (IPAs) assists potential investors with institutional and administrative procedures, serving as a factor of attraction for Chinese OFDI. Anderson and Sutherland (Reference Anderson and Sutherland2015) studied Chinese investment in Canada. Their findings revealed that Chinese investors encounter a significant psychic distance with regard to advanced economies due to unfamiliar institutional and administrative procedures. However, the presence of Canadian provincial-level IPAs in China increased the likelihood of Chinese companies investing in Canadian provinces. Research in this field also asserts that institutional convergence, geopolitics, and economic policy play crucial roles as determinants of Chinese OFDI in various locations such as Russia (Jia & Bennett, Reference Jia and Bennett2018), the Middle East (Kenderdine & Lan, Reference Kenderdine and Lan2018), and South and Southeast Asia (Halili & Rodríguez González, Reference Halili and Rodríguez González2023).

Researchers have also extensively examined the motives of Chinese OFDI to invest in locations such as Peru (Gonzalez-Vicente, Reference Gonzalez-Vicente2012), Central Asia (Hofman, Reference Hofman2016), and Southeast Asia (Andrews-Speed, Qiu, & Len, Reference Andrews-Speed, Qiu and Len2016). For example, a study of Chinese engagement in the Southeast Asian energy sector identified several key determinants behind Chinese OFDI, including industrial strategy purpose, resource supply security, development assistance, and regional strategic positioning (Andrews-Speed et al., Reference Andrews-Speed, Qiu and Len2016). In Southeast Asia, China wields significant influence over the infrastructure and manufacturing sectors, primarily due to its substantial investment in these two sectors compared to that of other countries (Chiang & de Micheaux, Reference Chiang and de Micheaux2022). Meanwhile, despite having relatively undeveloped economies and infrastructure, NRR countries such as Iran attract investments from China through the BRI policy thanks to the allure of their abundant resources (Garlick & Havlová, Reference Garlick and Havlová2021). The research explores local apprehension and social resistance related to the expansion and implications of increased Chinese power by considering cultural and informal factors (Chan & Pun, Reference Chan and Pun2022; Jackson & Dear, Reference Jackson and Dear2016).

Operational strategies

The research examines several critical themes related to firm operational strategy in the context of Chinese OFDI. These themes include entry mode (Huang, Reference Huang2015), location choice (Quer et al., Reference Quer, Rienda, Andreu and Miao2019), subsidiary relations (Gadzala, Reference Gadzala2010), and other firm strategies (Sun et al., Reference Sun, Zhang and Chen2013). Additionally, studies address challenges such as managing the liability of foreignness, navigating weak host-country institutional settings, and mitigating investment risk. Our analysis identified 15 studies specifically focused on firm operational strategy in NRR locations.

Scholars in this field argue that Chinese investment strategies in NRR regions, such as East and Southeast Asia, are shaped by traditional economic factors that wield significant influence. Furthermore, institutional factors exhibit considerable complexity and diversity in shaping investment strategies (Kang & Jiang, Reference Kang and Jiang2012). However, Chinese OFDI in this region tends to concentrate in countries with poor institutional quality and fragile political systems. This phenomenon contradicts traditional international investment theory and has been attributed to the non-market behavior of Chinese multinationals (Parente, Rong, Geleilate, & Misati, Reference Parente, Rong, Geleilate and Misati2019; Yang, Wang, Wang, & Yeh, Reference Yang, Wang, Wang and Yeh2018). Emerging NRR countries often face turbulent, costly, and unpredictable environments marked by institutional voids (Gao, Zuzul, Jones, & Khanna, Reference Gao, Zuzul, Jones and Khanna2017). Despite these challenges, Chinese investors have demonstrated successful navigation within such contexts (Luiz, Magada, & Mukumbuzi, Reference Luiz, Magada and Mukumbuzi2021). After entering a new market, Chinese firms often sustain their operations by actively engaging with key stakeholders. These stakeholders include home and host governments, state-owned and privately-owned enterprises, and local communities. This approach is evident in their operations within Central Africa (Parente, Rong, Geleilate, & Misati, Reference Parente, Rong, Geleilate and Misati2019). Meanwhile, Lv and Spigarelli (Reference Lv and Spigarelli2016) analyzed the role of institutional distance and host country attractiveness in terms of Chinese OFDI within the renewable energy sector in the EU. They argued that Chinese firms tend to invest in politically stable environments with effective corruption control, low barriers to entry, and a favorable climate for foreign ownership. De Beule and Zhang (Reference De Beule and Zhang2022) investigated the impact of contextual distance on the investment locations of Chinese multinationals in Europe and Central Asia. They claim that government initiatives, such as the BRI, have facilitated Chinese investors’ entry into foreign markets by providing better policy coordination. In NRR countries with weak institutional frameworks, initiatives such as the BRI aim to mitigate the absence of robust organizational and formal institutions. Quer et al. (Reference Quer, Rienda and Andreu2020a) suggest that in NRR regions such as Latin America, Chinese firms often choose acquisitions as an entry strategy when they already have prior host country experience. Alternatively, when firms have limited local experience, the home government provides policy support and mitigates acquisition difficulties (Quer, Rienda, Andreu, & Miao, Reference Quer, Rienda, Andreu and Miao2019). Huang and Staples (Reference Huang and Staples2018) examined the governance practices of Chinese MNEs and their foreign subsidiaries in Australia. They contend that the behavior of the board of directors is influenced by factors such as home country institutions and control practices rather than service or resource dependence. However, Chinese involvement in NRR countries, such as Zambia, poses a significant risk of unemployment for local workers, as Chinese firms often prioritize employing their fellow nationals (Gadzala, Reference Gadzala2010). Additionally, Haglund (Reference Haglund2009) contends that Chinese SOEs in Zambia tend to adopt short-term strategies and excessive cost-cutting practices, which ultimately fail to address long-term local environmental and social issues.

Investment outcomes

In NRR countries, research primarily focuses on the effect of Chinese investment on the host country’s economic development. There are eleven articles in this domain, with a focus on emerging NRR economies such as Mongolia (Chu et al., Reference Chu, Lv, Wagner and Wong2020), Iran (Garlick & Havlová, Reference Garlick and Havlová2021), Pakistan (McCartney, Reference McCartney2022), Congo (Matti, Reference Matti2010), as well as regions of Central Asia (Stegen, Reference Stegen2015), Sub-Saharian Africa (Marysse & Geenen, Reference Marysse and Geenen2009), and Latin America and the Caribbean (Jenkins, Reference Jenkins2010). Scholars discuss that Chinese foreign investment can have positive effects on the host countries’ economy through knowledge diffusion, technology transfer, and various spillover effects (Chu et al., Reference Chu, Lv, Wagner and Wong2020; Shen & Power, Reference Shen and Power2017). In some countries, as demonstrated in the cases of Indonesia and Malaysia, Chinese firms compensate for the government’s capital shortfall. This ultimately contributes to local employment, revenue generation, and subnational growth (Camba, Lim, & Gallagher, Reference Camba, Lim and Gallagher2022). Wolf (Reference Wolf2017), through an analysis of manufacturing sector development in Sub-Saharan Africa, demonstrates that Chinese economic engagement, particularly active investment in the domestic market, has a positive impact on the demand for infrastructure development. The literature has not extensively explored the adverse effects of foreign investments, as observed in broader-scale research. For instance, Kodzi (Reference Kodzi2023) found that increased Chinese investment did not seem to enhance domestic industry participation. This divergence could be attributed to specific strategic approaches employed by Chinese firms, including a focus on short-term value extraction and restrictions related to technology transfer. Additionally, research investigating the effects of FDI on domestic economies underscores the significance of the interaction between Chinese FDI and host-country institutions. For instance, Chakrabarty (Reference Chakrabarty2016) indicated that to enhance opportunities resulting from Chinese investment, the Democratic Republic of Congo facilitated a consortium between Chinese companies and the government. Additionally, Chinese investment may result in positive value-creating and spillover effects (Heim et al., Reference Heim, Kalyuzhnova, Li and Liu2019).

Antecedents and motives

In a similar vein to the theme discussed in the previous section, research in this area explores economic and institutional antecedents, motives of Chinese OFDI, and cultural and informal factors. A total of eighteen articles delve into this domain. The majority of publications focus on the motives of Chinese firms investing abroad in various TI locations such as Ireland (Collison et al., Reference Collison, Brennan and Rios-Morales2017), Germany (Hänle, Weil, et al., Reference Hänle, Weil and Cambré2022), and the United States (Gonzales & Ohara, Reference Gonzales and Ohara2019). Studies in TI locations primarily focus on examining cultural and informal antecedents that influence Chinese OFDI. These antecedents include attitudes and perceptions with regard to Chinese investment, as well as local concerns related to it. Additionally, research in this domain considers institutional factors in the host countries that impact investment decisions made by Chinese investors. Regarding the motives, the literature shows the increasing role of strategic resource-seeking motives behind Chinese investment.

Only a few studies have considered the economic and institutional antecedents in relation to Chinese investment in TI locations. For instance, Papageorgiadis, Xu, and Alexiou (Reference Papageorgiadis, Xu and Alexiou2019) suggested that European policymakers should provide support to Chinese firms contemplating investments in EU countries. Similarly to NRR locations, overseas branch offices of IPAs play a distinct role in promoting Chinese investment in Europe (Knoerich & Vitting, Reference Knoerich and Vitting2021). Li and Hendrischke (Reference Li and Hendrischke2020b) propose that Chinese subsidiaries in Australia should apply their business practices from their home country, thereby gaining a competitive advantage in the industries in which they are investing. They transfer their institutional-building and resource reconfiguration skills to other developed or developing markets. Meanwhile, Altamira et al. (Reference Altamira, Fornes and Mendez2024) assert that Chinese firms, with assistance from the home government, must demonstrate their adaptability to the market and their willingness to bridge the trust gap with overseas partners in developed countries.

The research related to cultural and informal antecedents highlights concerns regarding politically oriented Chinese investment and the apprehensions of the host country’s government. For instance, this was observed in New Zealand, as studied by Yu and Liu (Reference Yu and Liu2018), and the United States (Wu, Hoon, & Yuzhu, Reference Wu, Hoon and Yuzhu2011), which raised questions about the legitimacy of Chinese investment procedures (Du, Reference Du2014). For example, He and Lyles (Reference He and Lyles2008) analyzed the regulatory responses of the US, Canada, Australia, and the EU to Chinese OFDI to evaluate the plausibility of common fears about it. According to Chen’s (Reference Chen2017) analysis of guanxi-like relationships (i.e., connections) between Chinese and international partners, any prior existing guanxi was irrelevant when first entering the European market. However, after a while, Chinese firms successfully overcame the liability of foreignness by establishing new guanxi with their Western business partners.

Research on the motives behind Chinese investment highlights the difference between their motivations and those of Western counterparts. For instance, a study by Collison et al. (Reference Collison, Brennan and Rios-Morales2017) emphasizes the significance of cluster agglomerations and specific industries that attract Chinese investors. This research reveals that Ireland stands out as an attractive destination for Chinese companies due to its well-developed high-technology cluster. Additionally, the availability of cost-effective labor in Ireland sets it apart from other Western European countries. This research shows that barriers, which include not only economic ones such as the lack of natural resources and small market size but also soft factors such as cultural affinity, can be compensated for through favorable relations with China. Ge, Stringer, and Ding (Reference Ge, Stringer and Ding2017) found that Chinese investors frequently aim to acquire strategic resources, unlike the asset exploitation motive typical of Western OFDI. Their goals are to strengthen their position in the domestic market and build a global strategic advantage by acquiring technology, research and development capabilities, management expertise, intellectual property, premium brands and access to new markets. Blomkvist and Drogendijk (Reference Blomkvist and Drogendijk2016) found that the primary motives for Chinese investment in European countries are market-seeking and strategic asset-seeking opportunities, particularly in terms of technology and know-how. Furthermore, they highlight significant variations among European countries in their capacity to attract Chinese investment.

Operational strategies

Our review identified twenty-one articles related to the topic of firm operational strategy. The research focuses on location choice (De Beule, Somers, & Zhang, Reference De Beule, Somers and Zhang2018), subsidiary relations between headquarters and local subsidiaries in the host country (Fan, Cui, Li, & Zhu, Reference Fan, Cui, Li and Zhu2016), entry mode (Globerman & Shapiro, Reference Globerman and Shapiro2009), and other strategies (Pereira, Temouri, Shen, Xie, & Tarba, Reference Pereira, Temouri, Shen, Xie and Tarba2022). The literature suggests that less-experienced Chinese investors tend to focus on strategic asset-seeking investments in TI locations. Consequently, they are attracted to technology-rich regions and countries, particularly within the EU and North America. In these geographic areas, especially within industries where there is already a Chinese presence (referred to as industry agglomerations), Chinese firms, among other industry-related assets, prioritize acquiring technological resources (Puig, Madhok, & Shen, Reference Puig, Madhok and Shen2020). According to De Beule et al. (Reference De Beule, Somers and Zhang2018), the presence of mimicry of previous Chinese investors in the EU supports investment activities within the same sector and across unrelated sectors. Additionally, Lv and Spigarelli (Reference Lv and Spigarelli2016) discovered that a politically stable environment is particularly appealing for Chinese investment in the sales and services industries in TI locations. Meanwhile, countries with effective corruption control and low trade barriers encourage greater investment in manufacturing, especially among those seeking technological resources. Furthermore, Wang et al. (Reference Wang, Lavelle and Gunnigle2018) asserted that Chinese companies actively explore new markets, including developed ones, in response to escalating labor costs within China. They also emphasize the impact of geopolitical factors – such as the Hong Kong protests in 2019–2020 – on the strategic decisions of Chinese MNEs to establish their business presence in countries such as Ireland.

Scholars have closely analyzed the choice of entry mode in this domain. For instance, research indicates that Chinese MNEs tend to favor foreign acquisitions over greenfield investments in developed countries such as the US (Globerman & Shapiro, Reference Globerman and Shapiro2009). The entry market choice is crucial for Chinese companies, as it can facilitate a competitive advantage and mitigate the liability of foreignness (Klossek et al., Reference Klossek, Linke and Nippa2012). Shen and Puig (Reference Shen and Puig2018) argued that Chinese investment strategies concerning emerging economies should consider the specific conditions of each case, which may differ across countries. However, selecting the appropriate entry mode and location can facilitate overcoming barriers to FDI. Additionally, different entry modes may be associated with varying levels of subsidiary control, knowledge transfer, resource exchange, and investment risks. Pereira et al. (Reference Pereira, Temouri, Shen, Xie and Tarba2022) analyzed the entry mode of Chinese MNEs in India. They concluded that Chinese telecommunication corporations in India employed disruptive internationalization strategies to mitigate various risks. Furthermore, Huang (Reference Huang2015) examined the financial performance of Chinese OFDI in Australia and found substantial performance variations contingent upon several entry factors, including entry timing, the developmental stage of the target companies, and ownership level. Research has also explored how Chinese OFDI pursues strategic goals through non-market strategies, including the political and social leverage Chinese companies employ in developed countries. Germany serves as an illustrative example (Holtbrügge, Reference Holtbrügge2018). The argument posits that the Chinese investment strategy is significantly influenced by home institutions that endorse the use of information and financial incentive strategies. Consequently, this reduces the reliance on reputation-building strategies while amplifying support for various market entry strategies.

Research on the relationship between Chinese company headquarters and subsidiary branches in a host country is often associated with studies on the degree of management autonomy (Huang & Staples, Reference Huang and Staples2018; Schüler-Zhou & Schüller, Reference Schüler-Zhou and Schüller2013) and reverse knowledge transfer (Liu & Meyer, Reference Liu and Meyer2020; Mense-Petermann, Reference Mense-Petermann2022; Peng et al., Reference Peng, Qin, Chen, Cannice and Yang2017). According to a study by Schüler-Zhou and Schüller (Reference Schüler-Zhou and Schüller2013), the level of autonomy of Chinese subsidiaries is influenced by their ownership structure and the extent of reliance on knowledge transfer from the subsidiaries to the headquarters in China. Mense-Petermann (Reference Mense-Petermann2022) conducted research on Chinese investment in Germany and found that German subsidiaries of Chinese MNEs exhibit a ‘reverse integration’ phenomenon characterized by a distinctive form of reverse knowledge transfer. In the Australian market, Chinese companies adopt local practices to gain a competitive edge in original and emerging investment industries (Li & Hendrischke, Reference Li and Hendrischke2020b). Going forward, Chinese investors tend to build a robust position in the target markets by building strong local networks (Fan et al., Reference Fan, Cui, Li and Zhu2016). For example, Chinese banks create specific European subsidiary structures to facilitate the regional investment activities of Chinese corporations (Balmas & Dörry, Reference Balmas and Dörry2023). Overall, in the context of Chinese OFDI, the headquarters-subsidiary relationships differ from those observed in Western companies. Given that Chinese companies are often state-owned or have close government ties, they tend to adopt a more centralized management style, with greater headquarters control over the subsidiary (Schüler-Zhou & Schüller, Reference Schüler-Zhou and Schüller2013).

Investment outcomes

In this research area, scholars tend to emphasize the gains for home country firms rather than the impact on the host country from Chinese OFDI. The study by Gugler and Vanoli (Reference Gugler and Vanoli2015) examined how Chinese firms’ innovation processes are shaped by OFDI in Europe. They concluded that the innovation base of Chinese MNEs relies heavily on foreign patents, particularly those originating from developed economies. In addition, Chinese acquisitions in Europe strategically target sectors such as manufacturing, information technology, and raw materials. Liang, Giroud, and Rygh (Reference Liang, Giroud and Rygh2022) investigated the innovation performance of Chinese MNEs following the acquisition of European companies. The research specifically examined the relationship between technological gaps at the firm and regional levels and how these gaps impact the innovation performance of Chinese MNEs. Notably, the study revealed that firm-level technological gaps positively moderate innovation performance, regardless of whether the technologies involved are complementary or similar. However, enhanced innovation occurs through acquiring similar rather than complementary technologies in regions with gaps. A similar study by Li et al. (Reference Li, Li, Lyles and Liu2016) reached a comparable conclusion: firms – in this case, Chinese MNEs – can only benefit from the partner company’s knowledge when they have the ability to learn from them. If the technological disparity between the home and host countries is significant, domestic firms and the economy fail to fully harness the advantages of reverse knowledge spillover.

Antecedents and motives

Previous studies have explored various economic and institutional factors, cultural and informal antecedents, and motivations that influence Chinese OFDI in NRR locations. Much of the research in NRR locations has predominantly focused on institutional antecedents, including the host country’s institutions, government agencies, and support from the home government. However, there is a limited understanding of how these factors specifically affect NRR locations. The motivations behind investments in NRR locations are largely driven by the availability of resources. Nonetheless, few studies have investigated how familiarity with institutions and the institutional distance between home and host countries influences OFDI in these regions. This distance can be significantly affected by specific factors, particularly between China and countries in Africa and the Middle East (Gunessee & Hu, Reference Gunessee and Hu2021; Mohamued, Khan, Meyer, Popp, & Oláh, Reference Mohamued, Khan, Meyer, Popp and Oláh2024). Furthermore, future research should examine more economic antecedents, as this area has not received adequate attention. For instance, macroeconomic factors such as foreign exchange rates, inflation rates, export volumes, balance of payments, and overall economic situation in the home market may significantly influence investment patterns in NRR locations, especially since these investments are capital-intensive. Future research could also explore the impact of global economic uncertainty stemming from the COVID-19 pandemic and the Russia-Ukraine War on Chinese OFDI. Notably, China has not imposed sanctions on natural resource trade with Russia. Understanding China’s geopolitical ambitions’ regarding natural resources and how these influence investment strategies remains unclear, as noted in recent studies (Lewin & Witt, Reference Lewin and Witt2022; Liu, Su, Zhao, Martin, Yueh, & Lee, Reference Liu, Su, Zhao, Martin, Yuen and Lee2023). Investigating the geopolitical implications of Chinese OFDI can yield valuable insights into how current tensions and political alliances shape investment decisions. While our study identified a few publications concerning China’s foreign investment in the energy sector (Heim et al., Reference Heim, Kalyuzhnova, Li and Liu2019; Stegen, Lattemann, & Zhang, Reference Stegen2015), there remains a gap in research regarding motives such as securing access to critical natural resources. New directions for inquiry should particularly focus on strategies for securing critical minerals essential for energy transition and sustainable transformation. These areas deserve increased attention, especially in sectors dealing with rare earth elements, lithium, and other essential materials crucial for energy transition. Finally, given China’s increasing commitment to transitioning towards an environmentally friendly economy (Cabre, Galagher, & Li, Reference Cabre, Gallagher and Li2018; Lema, Bhamidipati, Gregersen, Hansen, & Kirchherr, Reference Lema, Bhamidipati, Gregersen, Hansen and Kirchherr2021), it is essential to investigate environmental sustainability and green investment. Research could examine the motivations driving Chinese investment in renewable energy, clean technologies, and sustainable infrastructure projects. Understanding the motivations behind these green investments, as well as their impact on environmental governance and sustainable development, could provide valuable insights into China’s evolving role in global sustainability efforts (Gong & Li, Reference Gong and Li2019; Shen, Reference Shen2018).

Operational strategies

In this thematic dimension, this review highlights the primary focus of previous research on investment location choices of Chinese enterprises. Scholars are delving into factors influencing these decisions, such as the interplay of location determinants and the contextual and institutional distances involved. Additionally, firms are strategizing to mitigate the liability of foreignness and navigating environments in countries with weak institutional frameworks. While it remains debatable whether Chinese companies adopt internationalization strategies similar to those of their counterparts in advanced economies (Gammeltoft & Cuervo-Cazurra, Reference Gammeltoft and Cuervo-Cazurra2021), the discourse is progressively shifting toward a deeper understanding of the evolving dynamics and motivations behind Chinese internationalization efforts (Feng, Reference Feng2023). Future researchers should prioritize firm-level analysis to illuminate the driving forces and the evolution of Chinese OFDI. By scrutinizing how individual firms’ strategies evolve over time, scholars can uncover valuable insights into the motivations underlying Chinese investment decisions and their broader implications for global economic dynamics (Blomkvist & Drogendijk, Reference Blomkvist and Drogendijk2016). Our findings regarding country-specific analysis in NRR locations highlight that discussions on Chinese resource-seeking OFDI often emphasize research on regions such as Africa and Central Asia. However, there is a pressing need for a more in-depth analysis of Chinese OFDI in individual countries, both emerging and developed ones, taking into account each nation’s unique circumstances and regional dynamics. We believe that conducting comparative studies among countries within the same global region could provide valuable insights into the varied impacts of Chinese engagement. Such studies would inform policymakers and investors about the nuanced effects of Chinese investment in different contexts, helping to uncover unique aspects of OFDI strategies and their consequences. Researchers might also find it worthwhile to investigate individual countries, particularly coastal nations or those with significant infrastructure potential. While much existing research centers on locations abundant in natural resources regions like Africa and Central Asia, there remains a gap in understanding Chinese investment patterns in the Middle East and North Africa, as also noted by Surdu, Mellahi, and Glaister (Reference Surdu, Mellahi and Glaister2018). The unique socio-economic context of these regions could offer new insights into the strategies employed by Chinese firms.

Investment outcomes

Our findings indicate that existing research on Chinese OFDI in NRR locations often focuses on the broad implications of Chinese investment on the development landscape of host countries at a macroeconomic level (Chu et al., Reference Chu, Lv, Wagner and Wong2020). This research includes an assessment of the effects on GDP growth and overall economic expansion, as well as more nuanced perspectives related to job creation and infrastructure development (McCartney, Reference McCartney2022). For example, the impact of Chinese FDI in the natural resource sector on the industrialization of regions such as Africa has been explored, highlighting its role in shaping regional economic development trajectories (Darko & Xu, Reference Darko and Xu2022). Furthermore, country-specific analysis of China’s natural resource trade, FDI, and aid reveal their effects on real GDP per capita in individual countries within large regions like the African continent, thus shedding light on the complex economic relationships within the continent (Cudjoe, Yumei, & Hu, Reference Cudjoe, Yumei and Hu2021). An examination of the economic relationships formed by countries participating in investment policies, such as the BRI, could consider country-specific factors such as governance, institutional quality, commodity specialization, and the extent to which natural resources might crowd out human capital (Chu et al., Reference Chu, Lv, Wagner and Wong2020). Finally, it is important to analyze the firm-environmental factors impacting the outcomes of Chinese OFDI, including local trade barriers, local business infrastructure, resource dependence, and the role of regional headquarters in facilitating localized learning (Fan et al., Reference Fan, Cui, Li and Zhu2016).

Antecedents and motives

While there is significant merit in researching the legal and regulatory environment of home and host countries that influence Chinese OFDI decisions, scholars should also investigate factors particularly relevant to TI investments. These factors include the landscape of intellectual property protection, contract enforcement, and transparency, which significantly impact operational strategies and investment outcomes (Heim, Reference Heim2023). For instance, given the global trend toward shifting production of technologically-intensive products and delivering goods and services to domestic markets, it would be valuable to explore whether Chinese companies are reconsidering their organizational and managerial approaches. Additionally, understanding how they effectively access technological resources in this context is crucial. Furthermore, there is an emerging focus on applying new frontier technologies to make Chinese OFDI more resilient to future shocks. A promising avenue for future research would be to adopt a multidisciplinary approach that comprehensively analyzes the impacts of global uncertainty on Chinese OFDI. This would help elucidate strategies for mitigating risks and enhancing resilience in an increasingly volatile and interconnected world. By examining how Chinese investors adapt to dynamic global challenges, researchers can help develop robust frameworks and policies that promote sustainable and resilient international investment (Meyer & Li, Reference Meyer and Li2022). Studying how various factors influence Chinese OFDI decisions in TI locations can provide insights into the dynamics of global capital flows. Understanding how Chinese investors respond to changing economic conditions and market opportunities can also inform strategies for fostering economic cooperation and reducing the risks associated with financial volatility. We propose that by further exploring these economic factors, scholars could deepen our understanding of the complex dynamics driving Chinese OFDI and contribute to more robust theoretical frameworks. Additionally, in recent years, there have been limited studies – aside from the work of Knoerich and Vitting (Reference Knoerich and Vitting2021) – that have investigated the role and impact of specialized institutions such as IPAs. Currently, research on this topic is limited. Future studies could build on the findings of Anderson and Sutherland (Reference Anderson and Sutherland2015) by exploring the role and impact of IPAs in facilitating high-technology acquisitions from China. Understanding how IPAs aid in technology transfers and promote investment flows is essential for grasping the dynamics of Chinese OFDI in the high-technology sector. Moreover, there has been insufficient focus on how concerns about China’s rise might affect public attitudes toward technological investment, particularly in critical infrastructure. The existing literature has not sufficiently examined people’s perceptions, beliefs, experiences, attitudes, and behaviors regarding Chinese investment. Given the rapidly changing geopolitical landscape and global economic environment, it is crucial to understand the social and cultural factors that shape public perceptions of Chinese investment. This understanding is vital for anticipating potential challenges and identifying opportunities for investors. Further research in this area is highly recommended. Lastly, it is important to investigate how Chinese investment motives intersect with technological innovation and intellectual property considerations. Previous studies have highlighted that the development of national innovation systems, knowledge, and emerging frontier technologies – such as digital technologies, autonomous driving, 3D printing, hardware innovations, artificial intelligence, human augmentation, and brain-computer interfaces – has driven Chinese OFDI toward acquiring resources related to these advanced technologies. This, in turn, promotes organizational learning and contributes to the development of competitive advantage (Deng, Reference Deng2009; Liang et al., Reference Liang, Giroud and Rygh2022). Future research could delve into the motivations behind Chinese investment in TI sectors, the strategies employed to acquire advanced technologies, and the implications for global innovation ecosystems and the protection of intellectual property rights.

Operational strategies

Research in TI locations covers a wide range of topics. These topics include headquarters-subsidiary relationships, knowledge transfer, the decision-making autonomy of Chinese companies, subsidiary roles, entry mode decisions, and strategies that firms use to address investment risks and strategic ambidexterity. The findings highlight gaps in research coverage, indicating that some areas remain underexplored. In particular, it is crucial to investigate how a firm’s resources – especially its social relationships and organizational hierarchy – impact its legitimacy-building process and its capacity to engage in essential activities like technological innovation (Zhang, Young, Tan, & Sun, Reference Zhang, Young, Tan and Sun2018). Additionally, studying the interactions between the external environment, such as economic and cultural distance, political relationships, the level of a firm’s activity in the host country, and local employees’ willingness to work for the parent company, is essential for TI locations, as these locations tend to attract activities based on available talent resources (Zhang, Zhou, van Gorp, & van Witteloostuijn, Reference Zhang, Zhou, van Gorp and van Witteloostuijn2020). Future research in these areas could focus on analyzing the relationships between headquarters and subsidiaries of Chinese companies, examining how these relationships vary across different host countries. It could also investigate the roles and mandates that subsidiaries adopt in various host country contexts, as well as the negotiation processes that take place (Mense-Petermann, Reference Mense-Petermann2022). There is also a need for more qualitative to uncover the control mechanisms utilized by Chinese parent companies and to determine whether decision-making autonomy is linked to specific control mechanisms (Schüler-Zhou & Schüller, Reference Schüler-Zhou and Schüller2013). Furthermore, exploring the nature of a firm’s learning processes and the network-building that enables EMNEs leverage the benefits of learning-intensive entry modes through qualitative research is crucial (Holtbrügge & Berning, Reference Holtbrügge and Berning2018). Currently, the geographic distribution of research in TI locations is predominantly focused on Europe and North America, particularly the US and Germany. Based on our findings, future researchers should expand their geographic scope to include countries such as South Korea, Japan, Brazil, New Zealand, and various African nations. These regions offer diverse investment opportunities, encompassing technological resources, infrastructure, and technology market access, as well as unique socio-economic contexts that can offer fresh insights. It would be worthwhile to explore why TI investments are directed to certain locations, such as Ireland, and whether this is linked to the tax regimes in those countries. Furthermore, scholars could examine how Chinese firms utilize ‘acquired knowledge to facilitate subsequent learning’ (Chen, Li, & Fan, Reference Chen, Li and Fan2021: 254). To better understand the learning mechanisms employed by Chinese investors, conducting longitudinal studies would be beneficial. These studies can monitor the evolution of Chinese investment strategies over time, yielding valuable insights into the dynamic nature of Chinese OFDI. By analyzing changes in investment patterns, firm strategies, and performance outcomes over time, researchers could identify trends, drivers, and implications for future investment behavior. For instance, a longitudinal study could investigate the behaviors of Chinese SOEs over time, the management practices that may be needed to maximize the benefits of technology acquisition, and how these practices might lead to improved firm performance (Vukicevic et al., Reference Vukicevic, Fallon and Ott2021).

Investment outcomes

Research on investment outcomes in TI locations largely examines the effects of Chinese investment on the development of firms in their home countries and the potential for collaboration with foreign counterparts. This includes examining technology transfer processes aimed at enhancing innovation capabilities and boosting productivity among Chinese firms (Liang et al., Reference Liang, Giroud and Rygh2022). This focus highlights a research gap that future research could address by exploring a broader array of emerging topics. Key areas for future research include the adoption of ICT across various types of firms, elucidating the mechanisms through which positive spillovers occur, and identifying strategies that promote wider ICT adoption and its associated benefits (Heim et al., Reference Heim, Kalyuzhnova, Li and Liu2019). Additionally, investigating the positive impact of OFDI on the technological capabilities of Chinese domestic firms and its connection to global strategies and successful asset acquisition is essential (Gugler & Vanoli, Reference Gugler and Vanoli2015). Moreover, research should evaluate the outcome of Chinese firms’ innovative capabilities by using metrics such as new product development or sales as proxies. Alternative measures of innovation performance, such as data on patent quality, should be considered (Liang et al., Reference Liang, Giroud and Rygh2022). Furthermore, future research should explore the contribution of Chinese MNEs to the economic development of emerging host countries through technology transfer, particularly in instances where technologies are not standardized or protected by traditional intellectual property rights, such as patents, and are classified rather as trade secrets.

In summary, the research directions outlined in the section emphasize the importance of investigating natural resources, exploring technological advancement, and considering the transformation towards sustainability in Chinese OFDI.