Hegemon or South-South partner? The ambiguity of Chinese foreign direct investment in Peru
Critical Perspectives on International Business
ISSN: 1742-2043
Article publication date: 29 February 2024
Abstract
Purpose
The purpose of this paper is to propose a framework for evaluating the relationship between China and Peru, drawing on dependency theory, against the backdrop of China’s explicit policies towards foreign direct investment. It seeks to transcend traditional interpretations of this relationship in the literature that focuses on China as either hegemon or a South–South partner to Latin American countries to highlight a more nuanced relationship.
Design/methodology/approach
The paper adopts a case study approach, focusing on China in Peru. The authors examine three areas of traditional, strategic and emerging industries drawing from Chinese national policies, reviewing these against characteristics of dependency: control of production, heterogeneity of actors, transfer of knowledge and delinking.
Findings
The authors find that Chinese foreign direct investment (FDI) in Peru demonstrates mixed motives and collectively operates as an ambiguous player. Chinese firms appear to be willing to work with various actors, but this engagement does not translate into a decolonial development alternative in the absence of a Peruvian political will to delink and Chinese willingness to actively transfer control of production and knowledge.
Originality/value
This paper contributes to existing literature on China in Latin America by evaluating Chinese outward FDI in Peru against China’s strategic aims in terms of a re-evaluation of dependency theory.
Keywords
Acknowledgements
The authors would like to thank the two anonymous reviewers for their constructive feedback and acknowledge the Co-Editor-in-Chief, Professor Mehdi Boussebaa, for his suggestions and encouragement.
Citation
Da Gama, F. and Bui, K. (2024), "Hegemon or South-South partner? The ambiguity of Chinese foreign direct investment in Peru", Critical Perspectives on International Business, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/cpoib-10-2022-0112
Publisher
:Emerald Publishing Limited
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