Strategies for Managing China's State-owned Foreign Direct Investment

China‘s state-owned enterprises (SOEs) and their overseas investment have played an important role in China's economic development. Nonetheless, the rapid expansion of SOE-dominated overseas investment from China has also raised concerns about so-called state capitalism, and several Western countries have objected to some cases of overseas investment from China, proffering various excuses. Meanwhile, the urgent need for both domestic market-oriented reform and the transformation of China‘s development model has also raised new challenges for China‘s overseas investment pattern. Domestically, China's overseas investment should promote its economic growth and the transformation of its development model so as to best serve its national interest. Internationally, China's overseas investment should promote fair competition in the international markets, and make China's economic success a win-win situation with the rest of the world. These two objectives are internally consistent. This paper aims to examine China's overseas investment from these two perspectives, and subsequently propose recommendations on how to better manage China‘s SOE overseas investment.