The Determining Factors of Western Australia’s (WA) Foreign Investment in China

Despite acknowledging that the economic recovery of Australia and particularly Western Australia from one of the worst global financial downturns will be coupled with a revived Chinese economy, there is a lack of knowledge about these connections. This study evaluates business drivers of Western Australian firms to appreciate how these factors enhance Chinese business engagement. The study findings demonstrate that market size, infrastructure and business ethics were significantly associated with intention to invest in China, but labour cost was not a primary driver. And while these relationships were influenced by personal, organizational and networking attributes, greater elucidation was obtained by interviewing managers. The evidence may benefit institutions intending to increase exposure to the Chinese marketplace.