Foreign direct investment (外商直接投资)

Foreign direct investment (外商直接投资 wàishāng zhíjiē tóuzī) is an investment (投资 tóuzī) from a foreign (外国的 wàiguó de) entity into a business in another country which is under the investor’s direct (直接的 zhíjiē de) control or ownership and establishes a lasting and controlling interest.

Foreign direct investment contrasts with other forms of investment such as portfolio investments, e.g. bond and equity investments, that typically yield minority but not a controlling ownership stakes.

  • (shāng) is commerce, business, or trade.
    • 外商 (wàishāng) is a foreign businessman.
    • 外商独资企业 (wàishāng dúzī​​qǐyè) is a wholly foreign-ownerd enterprise.
    • 外商公司 (wàishāng gōngsī) is a foreign company.
  • (tóu) is to throw, fling, put, or place in; the underlying radical is (shou) from hand ( shǒu).
  • (zī) is resources, capital, or money, as in 资金 (zījīn) funds, funding, or capital, or as in 资源 (zīyuán) resources.

« Back to Glossary Index