Authors: Karl P. Sauvant and Ken Davies, Columbia University

So far, the discussion of revaluation of the yuan has been almost exclusively about the impact on China’s trade balance.

But it is at least as important to ask what effect it may have on the country’s inward foreign direct investment (IFDI), which plays such a crucial role in China’s economic development, and its outward FDI (OFDI), which is receiving increased attention worldwide. Read more…