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Misperceptions of Chinese Investments in Canada and Their Correction: Evidence from a Survey Experiment

Published online by Cambridge University Press:  06 March 2019

Xiaojun Li ,
Yingqiu Kuang  and
Linting Zhang
Xiaojun Li*
Affiliation:
Assistant Professor of Political Science, University of British Columbia, C425-1866 Main Mall, Vancouver, BC, Canada, V6T 1Z1
Yingqiu Kuang
Affiliation:
Doctoral Student, Political Science, University of British Columbia, C425-1866 Main Mall, Vancouver, BC, Canada, V6T 1Z1
Linting Zhang
Affiliation:
Doctoral Student, Political Science, University of British Columbia, C425-1866 Main Mall, Vancouver, BC, Canada, V6T 1Z1
*
*Corresponding author. E-mail: xiaojun.li@ubc.ca
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Abstract

Foreign direct investment (FDI) from China has recently met with increasing public opposition in many host nations. Why does the public respond less favourably to Chinese FDI than to FDI from other countries? We explore this question by conducting a series of survey experiments in Canada, where the majority of the public holds a negative opinion of Chinese investment. We find that the bias can be attributed to innumeracy about the relative size of China's FDI and misinformation about investment rules that govern FDI projects in Canada. Correcting both misperceptions substantially reduces the bias of respondents against FDI projects from China. These results suggest that corrective information can lead to positive change in public attitudes, a finding that has important policy implications for Canadian leaders hoping to expand the country's business ties with China.

Résumé

L'investissement direct étranger (IDE) de la Chine s'est récemment heurté à une opposition publique croissante dans de nombreux pays d'accueil. Pourquoi le public réagit-il moins favorablement à l'IDE chinois qu'à l'IDE en provenance d'autres pays ? Nous explorons cette question en menant une série d'enquêtes au Canada, où la majorité de la population a une opinion négative sur les investissements chinois. Nous constatons que le biais peut être attribué à l'ignorance relative à la taille de l'IDE chinois et à la désinformation sur les règles d'investissement qui régissent les projets d'IDE au Canada. La correction de ces deux perceptions erronées réduit considérablement le biais des répondants à l'encontre des projets d'IDE en provenance de Chine. Ces résultats suggèrent que l'information corrective peut mener à un changement positif dans les attitudes du public, une constatation qui a des implications politiques importantes pour les dirigeants canadiens qui espèrent étendre les liens d'affaires du pays avec la Chine.

Keywords

MisperceptionForeign Direct InvestmentCanadaChinaPublic Opinion
Type
Research Article/Étude originale
Information
Canadian Journal of Political Science/Revue canadienne de science politique , Volume 52 , Issue 2 , June 2019 , pp. 285 - 302
Copyright
Copyright © Canadian Political Science Association (l'Association canadienne de science politique) and/et la Société québécoise de science politique 2019 

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