Beyond infrastructure: re-thinking China’s foreign direct investment in Malaysia

Abstract

Using a non-state-owned Chinese company LONGi as a case study, this paper analyses the motives, impact and acceptance of Chinese investment in Malaysia. The paper compares Chinese investment in manufacturing sector with the ones in infrastructure sector to obtain a more rigorous assessment than previous studies. In contrast to the narrative depicting Chinese investment into a single superstructure that generates a monolithic and deleterious impact couched under the Belt and Road Initiative, I argue that the motives and impacts of Chinese investment vary significantly with business nature and practices, and thus generating different acceptance level towards Chinese-funded project in host-site. LONGi’s case elucidates why Chinese investment in manufacturing encountered little political upheaval, while BRI projects in infrastructure sectors are often disputed. The analytical benefits and policy implications arising from this specific case study of Malaysia should be helpful to deepen our understanding of Chinese outward investment in not only other emerging economies in ASEAN but also broader region of the Asia-Pacific.