(Washington DC: CSIS, 2009, p.3)
China’s investment strength is arguably its mnost significant and effective soft-power instrument…these trends indicate that gains from trade surpluses and foreign direct investments have afforded China the capital to pursue significant ODI….
China’s investment strategy is heavily influenced by the need to acquire stable and sustainable supply flows of energy and raw materials to maintain a high level of economic growth. China’s need for energy resources and raw materials underpins its economic gesture sin the Middle East, Africa and Latin America….
Because the line between state and nonstate entities in China is not always clear Chinese aid and investment are often indistinguishable. In many ways this benefits Chinese interests. Because the party-state almost always owns a partial stake in China’s foreign ventures, investments are much easier to execute than those that are accountable to private shareholders.