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Purpose -Emerging countries are surging as important contributors of outward foreign direct investment (FDI) in both developing and developed markets around the world. This paper seeks to focus on Chinese investment in Europe with a particular consideration given to the manufacturing sector. The purpose of this paper is to analyse this new phenomenon in the context of the Eclectic Paradigm. Design/methodology/approach -This is a conceptual paper focusing on secondary research. The analysis incorporates aspects related to drivers and motivators, elements of difference, and includes considerations of the institutional role in influencing the competitiveness of firms and the strategies of countries. Findings -From this analysis emerges a contribution to theory development. A holistic model which incorporates government's role in influencing FDI is developed to advance understanding of Chinese OFDI in Europe. Practical implications -The model incorporating governmental influences on FDI presented in the paper can assist policy makers, managers and researchers in understanding the phenomenon. The analysis in the paper of the strengths and weaknesses of the new entrants and the threats and opportunities for incumbents provides insights for managers of the new entrants and incumbents alike. Originality/value -Data and scholarly research on the topic of FDI from emerging countries and on the emergence of China as a potential investor in Europe are limited. Since emerging markets are playing a growing role as sources of FDI, the study has sought to contribute particularly to the understanding of Chinese outward FDI in Europe.

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PurposeThe purpose of this paper is to analyze the role of sovereign wealth funds (SWFs) in sustaining global economies. The subject of SWFs has increasingly garnered the concerns of policymakers, market players and scholars for two main reasons: First, these funds represent the largest concentration of capital that the world has ever known, with the Arabian Gulf SWFs becoming increasingly important global players, especially during the most recent financial crises. Second, there is the dominant role of national governments in the management of these colossal funds. This paper assesses the contrasting perspectives on SWFs and analyzes the role they can play in sustaining the global economy by engaging in foreign direct investment.Design/methodology/approachBoth descriptive analysis and comparative analysis are used.FindingsSWFs are large and tend to be long‐term investors and have characteristics that are compatible with foreign direct investment (FDI). There is a role for them in sustaining the global economy via FDI. This analysis suggests that only 11 percent of SWFs' investment in FDI is needed in order to counteract the forecast decline of FDI. Initiatives such as the recently established Santiago principles can help to allay the concerns of host and investor nations. This paper concludes that SWFs should be welcomed by market players and policy makers as tools of economic growth.Practical implicationsCurrent trends indicate that SWFs are playing an important role as a source of foreign investment, and are also reducing the impact of liquidity pressures in the international banking system. The main driving force of their investing in the global market is in securing higher returns. However, there has been unease among Western countries that have concerns that governments could use SWFs to seize control of strategic companies in sensitive sectors, for their own purposes.Originality/valueThe paper assesses the potential contribution of SWFs to FDI and highlights aspects related to fostering a code of conduct that can allay concerns around areas such as transparency, and the extent to which restrictions should be imposed by host governments.