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.
- 商 (shāng) is commerce, business, or trade.
- 投 (tóu) is to throw, fling, put, or place in; the underlying radical is 扌(shou) from hand (手 shǒu).
- 资 (zī) is resources, capital, or money, as in 资金 (zījīn) funds, funding, or capital, or as in 资源 (zīyuán) resources.