Patterns and characteristics of Chinese contracts: an empirical study across Asia

This chapter studies the determinants of China's contracts in Asia. It examines the following five categories as the sources of the determinants for Chinese contracts: macroeconomic performance, natural resources, political environment, foreign relations with China, and, finally, location. In this cross-country analysis, the authors find that Chinese contractors are likely to go to a country that has a large population or GDP, good economic growth and an accelerating economy, abundant oil reserves, low rent for natural resources, and a relatively effective government with some political openness. This country is likely to be a member of the Association of Southeast Asian Nations (ASEAN); at the same time, territorial disputes with China are likely to affect Chinese contracts in the future.