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Essay / Research Paper Abstract
This 5 page paper provides an overview of the problems of investing in China. Bibliography lists 5 sources.
Page Count:
5 pages (~225 words per page)
File: MH11_MHNonPro.rtf
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Unformatted sample text from the term paper:
China and measures of protection for foreign investment, which have changed in recent years. All of these considerations determine what will happen if a non profit organization invests in
business ventures in China and the funds are blocked. One of the major considerations in this scenario is the type of investment that a non profit organization takes part
in. If non profit organizations invest in companies that are participating in foreign direct investments in China, the focus on the parent company becomes significant if funds are blocked.
At the same time, this type of investment has become increasingly common in China, creating significant changes in Chinas economic status and influencing Chinas gross domestic product (GDP).
In the more than two decades between 1979 and 2000, China has used in excess of US 500 billion dollars, two-thirds of which was foreign direct investment (Fung, Iizaka
and Tong, 2002). However, it was very slow at first. It took some years for investors to look to China as an attractive location. For example, between 1979 and 1983,
foreign direct investment accounted for only 12 percent of foreign capital being used in the country (Fung, Iizaka and Tong, 2002). There were many reasons for this slow beginning,
one reason had to do with the Chinese governments requirement that "all foreign ventures maintain its foreign exchange balance [which] made it difficult for foreign investors to repatriate any profits
not earned in hard currency" (Fung, Iizaka and Tong, 2002). In order to even cover their expenses, foreign investors had to export goods (Fung, Iizaka and Tong, 2002). Also, there
was just too much uncertainty with the Chinese government - the government could reverse their policies at a whim, there were no clear property rights and there was still an
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