FDI and China

Chinese foreign direct investment, or FDI, has skyrocketed in recent years, due to their economic  boom over the last few years. However, this sort of investment has been viewed with suspicion by many Western nations, such as the United States. Chinese FDI is focused on two particular sources, namely the financial sector and natural resources. Investment in natural resources is paramount to Chinese success in order to continue as an industrializing nation. China needs oil, coal, iron and many other raw materials to continue its industrialization. Chinese FDI, especially in developing nations, often results in Chinese-built infrastructure and significant investment in these third world nations. Sub-Saharan Africa is often the recipient of this investment, which leads to American fears that China is, in effect, buying up political capital in the developing world at the expense of the United States. Financial investment is another story, since it very diversified. Hong Kong, the main site of Chinese financial investment, is currently undergoing political upheaval, which has brought a great deal of uncertainty to Chinese and foreign investors in the region, since any type of uncertainty often causes a downturn in the market. However, the main question about Chinese FDI is what are its goals? Chinese politicians, who are very closely intertwined with its business leaders, and what they hope to gain out of it. Is China attempting to gain leverage and footings within the international economy, or is the party just trying to line its own pockets?