Foreign Direct Investment in China’s Electrification: Between Colonialism and Nationalism, 1882–1952

Abstract

This article traces the history of foreign direct investment in China’s electricity industry from 1882 to 1952 through the conflict between colonialism and nationalism. China’s electrification started with foreign direct investment in colonial enclaves: settlements, annexed territories, and leaseholds. Foreign direct investment contributed the majority of China’s power supply, but the penetration to China’s hinterland had faced the hurdle of nationalism on the part of both the Chinese government and the business community. Exceptions in Taiwan and Manchuria were related to Japanese colonialism, which peaked during the Sino-Japanese War (1937–1945). After World War II, domestication was implemented by the Chinese government. This article provides a new perspective on multinationals by delineating between inward and expatriate foreign direct investment in the Chinese context.