Foreign Direct Investment (FDI) has been one of the most discussed topics in the economic globalization. In effect, Multi-National Corporations (MNCs) consider FDI as an important means to reform their production activities across the borders, maintaining the corporate strategies while using the competitive advantages of the host country. The inflow of FDI in the host country has seen as a significant opportunity to integrate their economies into the global market, and to promote their economic development. Host country's government, in order to maximize FDI's benefits, employs a variety of policies and measures. Nowadays, China becomes one of the biggest players in this FDI global game.
This paper aims to present an updated vision of Chinese foreign investments in Europe, focusing particularly on Poland. The internationalization process of Chinese companies, which is perceived as the consequence of the greatest economic phenomenon that can be described as the progressive integration of China in the global economy, occurred in the last decades. It has been worth noticing how nowadays, enterprises compete among them through international strategies, not only on a trade relation basis, but also increasingly through overseas foreign direct investment (FDI). The framework in which the Chinese enterprising is evolving is taking enormous proportions, and it is expanding throughout the global market, seeking new opportunities and resources. Hence, seeking more favourable conditions than those found within their own national borders.
Short historical background
The inflow of FDI in China over the past 20 years, has significantly influenced its economic development. Since the opening-up to the global economy, China became one of the most important host countries for FDI flows (Wei & Liu, 2011). Therefore, the foreign companies established in the Mainland did not only provide financial capital, but also human capital such as management expertise and new technologies. In addition, FDI have helped to integrate the country into the regional and the global manufacturing and sales process, which has been determinant in intensifying its export-driven economic growth. Accordingly, it is now widely recognized that foreign investment has contributed significantly in the Chinese process of modernization (Jiang, 2012).
Nowadays, the trend has changed; from China's impressive economic development, and after its accession to WTO in 2001, the Chinese government decided to adopt a policy aiming at encouraging Chinese outbound investments.