Abstract
Abstract
Industrialization remains a central objective for countries of the Global South, yet for many it has remained elusive. This paper investigates whether and how China’s outward investment cooperation can help mitigate the obstacles to industrialization in these countries. We argue that a critical barrier lies in the insufficiency of mission-oriented investment, which is needed to address two persistent constraints facing late-industrializing economies: weak endogenous investment momentum and unstable financing conditions. China’s engagement in South-South cooperation can help expand and strengthen mission-oriented investment in partner countries, thereby facilitating their industrial development. To substantiate this argument, we first trace the evolution of China’s domestic industrial system to identify the origins and institutional foundations of its mission-oriented investment capabilities. We then examine, through case studies of industrial park development in Ethiopia and power infrastructure construction in Brazil, the mechanisms through which China enables such investment abroad. By linking China’s domestic industrialization experience with its outward investment cooperation, this study offers a unified analytical framework for understanding how development knowledge may be transferred through South-South investment partnerships, and draws implications for the future design of international development cooperation.