Chinese foreign direct investment in the United States has generated intense debates. Some welcome it for the immediate benefits such as job creation; others view Chinese investments, especially those controlled by the Chinese government, as a critical threat. The debates have so far missed an important question: how do Chinese companies investing in the US react to the host country's law? Ji Li formulates a novel analytical framework to examine the adaptation of Chinese companies to general US institutions and their compliance with US laws governing tax, employment equality, and national security review of foreign investments. The level of compliance varies, and this variation is examined in relation to company ownership, including state ownership. Li's analysis is based on interviews and a unique and comprehensive dataset about Chinese companies in the United States that has never been systematically explored.

‘At a time of increasing Chinese investment in the United States - and accompanying anxieties among policy makers - Professor Li provides new facts and important insights based on a novel data set and extensive interviews. The Clash of Capitalisms? is a significant contribution to our understanding of how Chinese companies view the US investment regime and the extent to which they adapt to their host country's legal environment. The book should allay some of the worst fears about Chinese ODI while enriching the debate about this timely topic.'

Curtis Milhaupt - Columbia Law School, New York

‘A very informative study of Chinese direct investment in the US that should help to overcome critics' fears. Professor Li's survey of managers of Chinese firms located in the US finds that they are much like other investors with a long term stake in the US economy. State ownership does affect firms' willingness to delegate decision-making to local staff, but in most other aspects these firms behave no differently from the rest of those surveyed.'

Susan Rose-Ackerman - Yale Law School, Connecticut

‘In this wonderfully researched book, Professor Li asks a vital, yet understudied question: how do Chinese companies experience the American legal system? Using unique data, the book details the perceptions and experiences Chinese firms have in the United States. It offers a crucial insight about the globalization of law and the functioning of legal institutions across borders. It deserves a wide readership both amongst those interested in American corporate, employment, and tax law, as well as those interested in Chinese law.'

Benjamin Van Rooij - University of California, Irvine School of Law

‘Important research that elucidates how China's rising multinational corporations adapt to distant institutional environments, supported with invaluable firm-level empirical evidence. A timely contribution to both academic and policy discussions on China's rapid ascent in the global economic order.'

Weiyi Shi - University of California, San Diego

‘The most substantive and comprehensive treatment of the ever more important question of how Chinese companies adapt to foreign laws and institutions as they expand their global reach. A must-read for all academics, business leaders, and policymakers who want to better understand the behavior of Chinese companies in the global economy.'

Wentong Zheng - University of Florida College of Law