Valentina Sara Vadi : “Chinese OFDI can boost the economy of host countries by supplying additional and resilient capital flows. Over the past few decades, China has lifted hundreds of millions of its people out of poverty by combining state intervention with economic incentives”.

Scholars have been discussing since long time ago the impact of Chinese investments overseas on the overall development of the countries where these investments are taking place. As such, experts different arguments in favour and against Chinese investments in developing and Least Developing Countries (LDCs). In the chapter Law, Culture, and the Politics of Chinese Outward Foreign Investment, the author Valentina Sara Vadi explored this matter and takes into account all the relevant factors. For this reason, the author discussed the pros and cons of having Chinese investments in developing countries and LDCs. One could say that the author offers a balanced description of the current state of affairs when it comes to dissecting the reality of Chinese OFDI in several areas of the world. In fact, it was clear through the approach adopted by the author that there is no possibility to completely dismiss any of the arguments made as it was revealed that Chinese investments have advantages and disadvantages which must be solved in order to ensure that these investments are indeed more beneficial and profitable to the host country than anything else. On the one hand, Chinese OFDI has the potential of changing the economic situation of any given country. Moreover, the conditional loans or financial aids which are offered by the Chinese government would provide a sufficient incentive for the governments of these countries to invest the offered capital in much-needed development activities that would help the citizens of these countries. Following this argument, Chinese OFDI could be perceived as a precious opportunity for the host state looking to achieve the necessary economic growth. On the other hand, the governments where these investments are taking place are known for their relatively poor record in human rights, environmental matters and so on. For this reason, Beijing has been criticized by the international community for not taking into consideration the impacts of its OFDI on Non-Trade Concerns (NTCs).