Sino‐British joint ventures in China: Investment patterns and host country conditions

This paper analyses the investment patterns of Sino‐British joint ventures in China. The research is based on the data of 551 Sino‐British joint ventures formed over the period of 1983 to 1996. It aims to provide an overview of Sino‐British joint ventures' investment in China and to explain the investment conditions. The article analyses the investment patterns from the dimensions of investment value, geographical location, industry sector and equity ownership. To explain the formation of the patterns, it further explores the host country factors of investment based on the policy framework, economic determinants and business facilitation. It reveals the investment trend, the uneven spatial distribution, the sectoral characteristics and the ownership structure of joint ventures. Suggests that government economic strategy and policies towards FDI are imperative in shaping the investment patterns. Locational advantages, economic growth, industrial structures and reform process are major economic factors influencing the investment decisions. Decentralisation of decision making and local governments' facilitation efforts also play a complementary role in attracting foreign investment.