Against the backdrop of rising interest in if not alarm about Chinese overseas direct investment (ODI), A Casebook on Chinese Outbound Investment: Law, Policy, and Business (hereinafter, the Casebook) is designed to provide fact-based and neutral case studies to help inform teaching in professional schools, including law, policy, and business schools. Comprised of fifteen cases, based on primary source materials, and written by experts, many of whom are either from or have extensive experience in the host state in question, the Casebook provides teaching material for educators and other concerned parties. The case studies are written with specific overarching objectives in mind: to shed light on the decision-making, policies, and practices of Chinese firms; to understand how Chinese firms adapt to challenging regulatory environments; and to assess what kind of effects Chinese projects have overseas, particularly in developing states where China’s footprint may be most pronounced. This Introduction lays the groundwork to address overarching questions, including, what are Chinese companies, what are China’s international investment strategies, what are the trends in Chinese ODI, what is the relationship between Chinese ODI and the Party-State, and what are the effects of Chinese capital in host states?

The case study examines the construction of the Imperial Pacific casino in Saipan, a US commonwealth in the Western Pacific, by Chinese firms employing Chinese workers. The focus is on the serious labor abuses that transpired and the legal and other consequences faced by the companies as a result. The case sheds light on the structure and operations of these Chinese construction projects, including the layers of subcontracting and how efforts to maximize speed and minimize costs resulted in numerous violations of local laws. The case also examines what actions the abused Chinese workers on such projects may take to enforce their rights and address their mistreatment. The case study therefore provides a useful tool to consider the issues involved in hiring and supervising contractors, such as cost, contract provisions, subcontracting, monitoring, and liability. The case also provides a platform to explore what legal, advocacy, and other tools workers and their advocates can use when legal violations and labor abuses occur. Additionally, this case study provides a uniquely detailed account of the events that transpired in Saipan because the author served as a lawyer representing the abused workers in a lawsuit alleging that they were subjected to forced labor.

After decades of exponential growth, China has transformed from a stagnant, impoverished autarky to the world’s second-largest economy highly integrated into global supply chains, and numerous Chinese firms have embarked on overseas business expansion on an unprecedented scale. Against that backdrop, many Chinese investors have ventured into the highly competitive, strategically important US market. Though the recent geopolitical confrontation between the two countries has hampered the investment flow, many large Chinese investors have been hesitant to withdraw from the US market. How do Chinese investors negotiate the omnipresent and consequential legal risks and opportunities in the United States? This question, which holds great practical, policy, and theoretical importance, has received scant scholarly attention. This chapter lays out the road map of the book that attempts to provide the answers.