Abstract: As an increasingly large link between China and the rest of the world, as well as a key component of economic policy, foreign direct investment (FDI) is an investment made by a party in one country in business interests in another country. It represents the influx of both capitalism and globalism in China. This paper investigates the link between FDI and regime stability by examining how FDI has affected formal and informal institutional change, especially at the local level. I come to the conclusion that FDI has indeed created institutional change in multiple arenas but that this change has reinforced the CCP’s stability.
Key Words: Foreign Direct Investment, FDI, Chinese Communist Party, CCP
About the Author: Sarah Chin is an undergraduate student studying political science at Tufts University. Her research interests include women’s rights, labor, democratization, and political economy in East Asia.