On November 8, 2025, Mr. TANIMURA Shin, Senior Economist at JBIC, delivered a research presentation at the 20th International Convention of the East Asian Economic Association, held in Manila, the Philippines. This study analyzes the determinants of profitability in Chinese enterprises' foreign direct investment within the framework of the balance-of-payments development stage theory. It assesses the degree of internationalization by the ratio of foreign assets and estimates its relationship with corporate profitability, as measured by ROA. The analysis revealed that short-term profitability tends to decline as internationalization progresses. This trend was more pronounced in companies with equity held by government-affiliated funds and during the expansion phase of the Belt and Road Initiative (2013–2018).
