Foreign Direct Investment in China

This article "Foreign Direct Investment: Inflow of Cash From Enterprises" was found on the Financial Times website (www.FT.com), authored by John Thornhill on December 11, 2002. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to foreign investors. This theme helps to understand the influence of the Chinese economy on the world economy in addition to foreign direct investment.

"Foreign investment in China continues to increase despite the global financial crisis.The foreign investment in China continues to increase as China recently replaced Japan as the world's second largest economic power In this booklet we will explain in detail about foreign capital, commercial vehicles, approval and registration, capital requirements, shareholders and nationality of directors, management structure restrictions, director's responsibility, parent company's responsibility, work / work. Residence permission, reduction tax rules, competition, restrictions on financial services section, document administrative law

US Trade War of China - TPP, three erroneous trade discussions, PR President's journey, trade, customs, intellectual property / patent securities

Given the significant improvement in the international balance of payments due to China's domestic consumption, investment infrastructure, and the influx of foreign direct investment into China, it can be said that FDI is important for China's remarkable economic growth. Compared to other major direct investment destinations such as the United States and the UK, China is relatively vulnerable to external shocks of "international mobility" because of its relatively high reliance on foreign direct investment. As can be seen from the appendix, China's GDP clearly shows a growing trend from 1978 to 2006, consistent with the influx of foreign direct investment after Mao's term of office.

Foreign investment is a basic national policy for China to open to the outside world. The way to attract foreign investment to China is generally divided into direct investment and other investment. The most direct investment is the Chugoku and foreign joint venture, the Chugai cooperating enterprises, the fully foreign-owned enterprises, foreign-affiliated joint-stock companies and joint development companies. Other investment methods also became popular including compensation transactions etc.