Globalisation of Chinese Enterprises through Outbound Direct Investment: Evidence from Sri Lanka

The rapid proliferation of Chinese Outbound Direct Investment (ODI) has over the years been attracting worldwide attention due to its overwhelming presence and distinct characteristics which stands in contrast to other experiences from before. This paper examines these issues in the context of Sri Lanka focusing especially on operations of the State-Owned Enterprises (SOEs) and the Private Enterprises (PEs) of China. The study rests on data gathered from Chinese enterprises per structured questionnaire and interviews with functionaries thereof. The evidence presented here highlights the vital role played by the Chinese state and the Chinese business clusters in facilitating the stage for soft-landing for Chinese ODI in Sri Lanka. The findings also reveal the vertical and horizontal strategies for expansion by Chinese SOEs and PEs in the promotion of Chinese entrepreneurship in Sri Lanka.