Foreign Direct Investment in China - An Analysis of the Current Reform Status
Foreign Direct Investment in China - An Analysis of the Current Reform Status

Author: Christian Funke

Publisher: GRIN Verlag

Published: 2007-09-27

Total Pages: 41

ISBN-13: 3638747441

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Seminar paper from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 1,7 (A-), European Business School - International University Schlo Reichartshausen Oestrich-Winkel (Strategic Business Management), course: Managing in the Global Economy, 8 entries in the bibliography, language: English, abstract: This paper addresses the question whether China has made enough reforms to justify significant investments and which additional reform steps are needed. The People's Republic of China (PRC) has shown tremendous Gross Domestic Product (GDP) growth in absolute and per capita terms of 9.3% and 8.0% per annum, respectively, over the last 25 years since market oriented reforms were started in 1978. Its GDP per capita has quadrupled over this period reaching around 1,000 US$ in 2003. The market oriented reforms in China can be divided into two stages, dubbed "reforming the system" from for the first 15 years and "replacing the system" from 1993 onwards. In the second stage a significant determinant of China's success has been its policy of opening up the economy and attracting foreign direct investment (FDI). FDI grew with a compound annual growth rate (CAGR) of 26.7%, and the growth rates in the 90s have even been more staggering with FDI reaching about 50 billion US$ in 2002. This FDI growth went hand in hand with growing imports and exports, reaching over 300 billion US$ in 2003 with a CAGR of 14.7% and 15.6%, respectively. This paper aims at answering the question stated in the opening paragraph by analyzing the specific market oriented reforms which have taken place in the two stages of the Chinese reform process. The paper argues that China definitely has made enough reforms to justify the significant FDI which has been flowing into the country. However, there clearly is a need for more reforms as China becomes more and more interconnected in a globalized world economy, especially with joining the World Trade Organizati

Selling China
Selling China

Author: Yasheng Huang

Publisher: Cambridge University Press

Published: 2003

Total Pages: 420

ISBN-13: 9780521814287

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In this book, Yasheng Huang makes a provocative claim: the large absorption of foreign direct investment (FDI) by China is a sign of some substantial weaknesses in the Chinese economy. The primary benefits associated with China's FDI inflows are concerned with the privatization functions supplied by foreign firms, venture capital provisions to credit-constrained private entrepreneurs, and promotion of interregional capital mobility. Huang argues that one should ask why domestic firms cannot supply the same functions. China's partial reforms, while successful in increasing the scope of the market, have so far failed to address many allocative inefficiencies in the Chinese economy.

Pioneering Economic Reforms in China's Special Economic Zones
Pioneering Economic Reforms in China's Special Economic Zones

Author: Weiping Wu

Publisher: Ashgate Publishing

Published: 1999

Total Pages: 192

ISBN-13:

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This text examines the performance of China's Special Economic Zones (SEZs), particularly in attracting foreign investment and promoting technology transfer, through an in-depth case study of the largest zone - Shenzhen. The major theme is that spatial placement and unique planning activities, which are not found elsewhere within China, are more important in explaining the performance of SEZs than is acknowledged in the existing literature. The significant growth of foreign investment is primarily a possitive function of proximity to major countries of origin, inphysical, economic, cultural and political terms; and is also positively related to favourable local policy environment. Labour cost differentials between the zones and other potential sites in China and domestic market potential in contrast to traditional neoclassical theory, are only residual factors. The manuscript offers a unique resource for China scholars, policy makers concerned with economic development, and business interested in investing in China.

Foreign Direct Investment in China
Foreign Direct Investment in China

Author: Ms.Wanda Tseng

Publisher: International Monetary Fund

Published: 2002-02-01

Total Pages: 26

ISBN-13: 1451974175

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China's increasing openness to foreign direct investment (FDI) has contributed importantly to its exceptional growth performance. This paper examines China's experience with FDI and identifies some lessons for other countries. Most of the factors explaining China's success have also been important in attracting FDI to other countries: market size, labor costs, quality of infrastructure, and government policies. FDI has contributed to higher investment and productivity growth, and has created jobs and a dynamic export sector. China's success, however, did not come without some pitfalls: an increasingly complex tax incentive system and growing regional income disparities. Accession to the WTO should broaden China's "opening up" policies and continue FDI's contributions to China's economy in the future.

China's Continued Reforms in a New Era
China's Continued Reforms in a New Era

Author: Xugang Yu

Publisher:

Published: 2020

Total Pages: 301

ISBN-13: 9789811212659

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"This book studies the new economic and financial reforms China is adopting to advance its economy, and the policies behind the Chinese Outbound Direct Investment (ODI). It also aims to illustrate the impact of China's reforms on Chinese Outward Investments, and the Internationalization of the RMB. The book explores the new wave of reforms, especially in the financial sector, together with President Xi Jinping's vision for a shared future for mankind together with his explanation on the 'new Era'. In fact, China is entering a 'New Era' and transforming its economy into a more sophisticated one, upgrading the industrial sector and introducing specific and dedicated reforms in the SOEs (State Owned Enterprises) to render them more efficient and allow them to compete fairly at the international level. The book also focuses on RMB 'internationalization'. It also contains an addendum on trade frictions between China and the US"--Back cover.

Information Externalities Affecting the Dynamic Pattern of Foreign Direct Investment
Information Externalities Affecting the Dynamic Pattern of Foreign Direct Investment

Author: Sayuri Shirai

Publisher: International Monetary Fund

Published: 1994-04-01

Total Pages: 28

ISBN-13: 1451974647

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The dynamic pattern of foreign direct investment (FDI) in developing countries shows a three-phase pattern. Despite government policies that promote it, initially the inflow of FDI is sluggish, followed by a period of considerable fluctuation before finally entering the stage of rapid growth. The paper explains the pattern through recourse to two concepts: the searching process of individual investors and the information externalities of investors in the aggregate. Policy implications that may serve to shift an economy of a developing country from small-scale FDI to one of rapidly expanding FDI are considered. As China is a clear example of this pattern, it has been selected to promote understanding of the process.

China’s Outbound Foreign Direct Investment Promotion System
China’s Outbound Foreign Direct Investment Promotion System

Author: Changhong Pei

Publisher: Springer

Published: 2015-03-20

Total Pages: 249

ISBN-13: 3662456311

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This book outlines China’s current overseas investment promotion system, analyzing the general situation and the main problems arising during its development. Based on investigations of both the historical and present-day contexts of outbound investment, the book suggests improvements to overseas investment promotion to protect China’s enterprises from various aspects of the system including legal, regulatory, fiscal, intellectual property rights and standardization, risk prevention, foreign trade and economic cooperation zones to promote overseas securities investment promotion and social services.

Institutions and Investments
Institutions and Investments

Author: Jun Fu

Publisher: University of Michigan Press

Published: 2010-06-08

Total Pages: 174

ISBN-13: 0472026860

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As China continues to be heralded as a rising economic power, the need for an understanding of its institutional effects--such as investment-related policies, regulations, and laws--on foreign direct investment increases as well. Institutions and Investments employs interdisciplinary perspectives from economics, business, law, and political science to shed light on the interaction between institutional changes and investment patterns and to form a clear picture of investment behavior as China's legal and regulatory infrastructure has developed over the reform years. Organized into three main parts, the book first discusses the evolution and nature of China's FDI regulatory framework. Part 2 examines the various modes and variant patterns of FDI in China in the reform years. Part 3's central task is to demonstrate a systematic link between institutional changes in China's FDI regulatory framework and the changing patterns of FDI. In conclusion, Jun Fu finds that China has made substantial progress from a command economy to a market system, but that it still has a long way to go before it truly attains a transparent and rule-based system. This book adds new dimensions to the scholarship on China as a growing economic power and will be of particular interest to international economists, political scientists, and business scholars studying China. Jun Fu is Associate Professor in the School of Economics and Management, Tsinghua University.

Foreign Direct Investment in China
Foreign Direct Investment in China

Author: Philip D. Grub

Publisher: Praeger

Published: 1991-08-30

Total Pages: 306

ISBN-13:

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Written for international business managers and executives, this book offers a comprehensive and authoritative discussion of foreign direct investment in the People's Republic of China. The authors note at the outset that although the events of Tiananmen Square brought both trade and investment to a virtual standstill, new investment is now again flowing into China (but at a guarded pace). For those wishing to pursue the numerous opportunities that still exist, this volume offers a full analysis of the risks involved, a thorough treatment of the different forms of investment activities in China, complete coverage of China's investment policies and incentives, and specific case studies of foreign direct investment in China. The authors begin by providing an overview of the Open Door Policy and China's economic and managerial systems. Next, they discuss special economic zones and open cities; investment policies, such as flexible foreign ownership and choice of investment location; new incentives after 1986; and investment motivations. The modes of foreign investment covered include equity joint ventures, contractual joint ventures, wholly foreign-owned enterprises, joint oil exploration, compensation, and trade. Separate chapters analyze foreign investment inflows, identify the organizations involved in foreign investment, describe investment negotiation and approval procedures, and provide a detailed example of a joint venture feasibility study. Three case studies and an evaluation of the outlook for future foreign investment in China complete the volume. Numerous explanatory tables and figures amplify points made in the text. Two appendixes provide a sample contract and articles of association for joint ventures in China and the regulations for development and opening of the Shanghai Pudong New Area. A third appendix lists the rules for the implementation of Chinese law on wholly foreign-owned enterprises in China.