How Political Indices Affect The Shadow Economy

China has been one of the great beneficiaries of globalization. For decades this country has succeeded in attracting and turning to good account substantial foreign capital inflows, which contributed to its unprecedented growth and development. Given its changed economic fundamentals after decades of accelerated transformation,China is now bound to adjust to its new internal and external realities and implement comprehensive reforms, including some touching capital movement. The present paper reviews the distribution, structure and trends of the Chinese ODI in five CEE countries, in the larger context of China’s “going out”/“going global” approach and its policy towards Europe and the CEE. We look at China’s new strategy towards CEE, its investment projects, motivations and constraints, focusing on the CEE-5 group and in the final part of the paper we emphasize Romania as a destination for Chinese ODI, providing an analysis of the Chinese investment evolution, specific traits, weaknesses, accomplishments and prospects of further development.