(2)   Objectives: Chinese outbound investment has become a subject of importance over the last months and years, and a number of scholars have researched into its growth and its characteristics. Most scholars believe that Chinese outward FDI can overall be explained by traditional theories on FDI and MNEs (Dunning, 2008); they feel, however, that in some aspects Chinese outward FDI is unique and differs from known investment in the “Western” context. Most importantly, it is largely executed by SOEs. The question has thus come up about an involvement of the Chinese government in various Chinese outbound investment projects.
This paper aspires to deepen understanding on the phenomemon by focusing on the policy dimension of Chinese outbound investment. First, it aims at providing an understanding of the potential and actual government influence. It compares motivations for internationalization by Chinese enterprises and the Chinese government, and it points out where Chinese companies own a comparative advantage in their internationaliaton activities compared to its mostly Western competitors due to the particular Chinese policy support.
Secondly, the paper aims at considering the influence of the Chinese government in outbound investment more generally. Following Truman, the influence of the Chinese government on outward FDI concerned by the end of 2005 at least 60 percent of the country’s cross-border investments, compared to 2.5 percent for the US. Questions about an adequate reaction by Western countries emerge.
 (3)  Data/Methods: The paper takes an analytical approach, comparing factual information on Chinese outwarf FDI with the given theories on MNEs as well as emerging explanations for special characteristics of Chinese FDI as presented by a number of scholars (Buckley, Morck, Child & Rodriguez). Statistical information provided by relevant national and international bodies (National Banks, international organizations such as OECD, UNCTAD, Worldbank) are put in the context of the theory. The paper gives evidence about main findings by illustrating all major results with a variety of most recent exampels for Chinese outward FDI.

 (4)  Results:
Apart from typical motivations for internationalization that apply for Chinese MNEs (market-seeking, resource-seeking, strategic asset seeking and efficiency-seeking motivations), this paper points out a number of additional motivations, which are directly linked to the particular institutional and societal context of China. It is particularly interesting to analyse these drivers with the aim to differentiate government and company goals.
In consequence of government interference, a number of advantages and disadvantages for Chinese MNEs become obvious as being directly attributable to the policy dimension of Chinese outbound FDI. Analysing and differentiating these elements, this paper argues that the success of Chinese MNEs will largly depend on how well they succeed in riping the fruits of positive government support, and manoeuvring around detrimental government interference.
Finally, the paper underlines that a reaction of many countries to the policy dimension of Chinese FDI is still to be decided. The paper points out some major elements of the emerging international agenda for the regulation of FDI.