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Essay / Research Paper Abstract
A 23 page paper. China began its "open door" policy in 1979 when the government adopted The Law of the People‘s Republic of China on Joint-Ventures using Chinese and Foreign Investment. Over the next 15 years, other laws and regulations were adopted that encouraged foreign investment. The policies adopted over that time are discussed, including incentives China offered to foreign investors. WTO membership continues to result in other policies and regulations being changed. The amount of foreign money flowing into the country is tracked. The impact of foreign investment is reported and discussed, including GDP, position in the world market in various industries, export and import ratios. The writer comments on the geographical and regional differences in terms of FDI inflow. Statistical data included. Bibliography lists 10 sources.
Page Count:
23 pages (~225 words per page)
File: MM12_PGchina.rtf
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Unformatted sample text from the term paper:
regulations that not only permitted more FDI but encouraged it. Initially, growth in FDI inflow was still very slow but in the mid-1980s when the government dramatically decreased tariffs and
dramatically increased autonomy of foreign investors, FDI levels increased dramatically to the point that by 2000, China was the second largest recipient of FDI in the world, after the United
States. As one author phrased it, with an average annual growth rate of more than 9 percent, over the last 25 years, "China has become an economic powerhouse" (Alexander and
Zunun, 2004). Foreign investment in China has had a direct impact on the countrys economic growth, although the growth has been seen in certain areas more than others. This
has to do with the fact that China made certain provinces more attractive to foreign investors than other provinces. The governments decisions regarding locations had to do with the countrys
own geography and infrastructure. The eastern coastal regions, for example, offered better access for foreign investors than did inland provinces. The following pages review the different laws and policies
that were changed, the impact of higher levels of FDI and the impact of membership in the World Trade Organization. Chinas FDI Policies In the late 1970s,
China began opening the door for foreign direct investment (FDI) (Fung, Iizaka and Tong, 2002). At that time and into the 1980s, the Chinese government adopted policies that encouraged foreign
direct investment (Fung, Iizaka and Tong, 2002). Some of the regulations allowed joint ventures involving FDI, Special Economic Zones (SEZs) and Open Cities were identified (Fung, Iizaka and Tong, 2002).
In July 1979, at the second session at the Fifth National Peoples Congress, The Law of the Peoples Republic of China on Joint-Ventures using Chinese and Foreign Investment was adopted
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