Advertisement Trans-Pacific View author Mercy Kuo regularly engages subject-matter experts, policy practitioners, and strategic thinkers across the globe for their diverse insights into U.S. Asia policy. This conversation with Dr. Jean-Marc F. Blanchard – executive director of the Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations in the U.S. and distinguished professor at East China Normal University, School of Advanced International and Area Studies – is the 268th in “The Trans-Pacific View Insight Series.” Explain the impact of the 14th Five Year Plan (FYP) on China-U.S. cross-border investment trends. In theory, the 14th FYP should produce increased bilateral FDI flows. China needs intellectual property (IP), advanced equipment, and markets to support its continuing effort to move up the value-added chain, boost its high-tech capabilities, and diversify markets, and FDI in the U.S. could help with this. China also will embrace FDI that improves its R&D base and yields IP, advanced equipment, and processes; enables it to supply more and better education, healthcare, and logistics services; facilitates development in more “backward” areas; aids its creation of a greener economy; and reduces inequality. American companies have much to offer in these areas. For their part, American businesses remain attracted to China because of the latter’s market size and growth, favorable FDI policies, and positive developments in sectors like financial services.