Beyond as bridges: The role of the Chinese voluntary associations in Chinese outward foreign direct investment in Southeast Asia

Abstract

With the implementation of the ‘Go Global’ strategy and the Belt and Road Initiative, Chinese enterprises have gradually grown into the main force of outward foreign direct investment (OFDI) around the world. Overseas and domestic Chinese voluntary associations (CVAs) have actively promoted inward foreign direct investment in China, while their role in helping Chinese enterprises invest abroad has not been fully revealed. To address this lacuna, we explore the role of CVAs in the foreign direct investment of Chinese enterprises in Southeast Asia and the heterogeneity of their roles based on different types of associations. Our main argument is that CVAs play an intermediary role in shaping Chinese OFDI by facilitating bilateral information exchange and resource matching to enable enterprises' global–local interactions. This research contributes to verifying the impact of CVAs on Chinese enterprises' OFDI and providing implications for both host countries to attract investment and multinational enterprises from China and other developing countries to achieve internationalisation.