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Although studies have shown China's growing influence on developing countries' policies, little empirical work has considered the relationship between Chinese overseas foreign direct investment (FDI) and host countries' online digital freedom. Considering as many as 112 developing countries from 2003 to 2019, and using a two-stage least squares selection modeling approach, we find an association between Chinese FDI and four types of limits on online digital freedom. Conversely, when we substitute global FDI (excluding Chinese FDI), we obtain different results, suggesting there is something unique about Chinese multinational corporations and online digital freedom. Our research indicates that China and host states' domestic leaders mutually benefit by restricting online digital freedom. [ABSTRACT FROM AUTHOR]

This article investigates the effects of US sanctions on Chinese public and private overseas foreign direct investment (FDI). Using data for up to 112 developing countries from 2005 to 2015, we find that Chinese state-owned enterprises (SOEs) are more likely to invest in countries threatened or targeted with US sanctions relative to Chinese privately owned enterprises (POEs) because they have the Chinese government's backing and are larger in number and size, motivating them to invest in higher-risk states. The Chinese government also reaps political benefits by Chinese SOEs investing abroad, enhancing China's economic strength and decreasing its rivals' influence. We obtain similar results for Chinese SOEs and POEs regardless of the investment sector and conduct additional robustness checks that further reinforce the main findings. Our study provides insights into how China's overseas FDI increases its economic and political reach across the globe at the possible expense of the United States. [ABSTRACT FROM AUTHOR]