The importance of foreign investment to China goes well beyond the USD 1.6 trillion in investment received since its opening. The unique analysis in this book shows that the investments, operations, and supply chains of foreign enterprises have accounted for roughly one-third of China’s GDP in recent years, and that foreign enterprises have made numerous additional contributions to China through technological, managerial, business practice, supply chain, and other spillovers. This book shows how China’s leaders managed this process and provides lessons for policy makers interested in building their own economies and tools for companies to demonstrate their contribution to host countries.

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.

China has developed a piecemeal pattern of regulating foreign investment since the end of 1970s. The latest law is the Foreign Investment Law (FIL), which became effective on 1 January 2020. The groundbreaking new FIL is well acknowledged for its promises and affirmations pledged to investors, signalling China’s eagerness to improve its investment environment and regain momentum for investment growth. This book provides an updated and holistic understanding of the key features of the regulatory regime on foreign investment in China with critical analysis of laws and their implementation. It also examines sensitive and complex legal issues relevant to foreign investment beyond the 2020 FIL and new developments on foreign-related dispute settlement. The book uses cases of success and failure to illustrate the nuances and differences between law and practice regarding foreign investment. Considering China’s magnitude in the global economy and the weighty role of the regulatory system on foreign investment in China, this book is of great interest to a wide range of audience including academics in the field of investment law, legal practitioners, policymakers, and master's students in law and in management.

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.

Foreign direct investment has contributed significantly in transforming the Chinese economy over the past three decades. China has become one of the most popular destinations for foreign direct investment. For corporations and business executives who desire to participate in the expanding China market, understanding correctly the driving forces and impacts of foreign direct investment in China, as well as the ways to smartly execute investment transactions there has become the fundamental knowledge that they need to grasp. This book is a combination of the author’s research and 15-year practical experience in managing investment transactions in China. This book uniquely offers both a theoretical overview of the phenomenon of FDI in China (chapters two to four) as well as the practical steps in executing investment transactions there (chapters five to seven). The author also provides illustrative charts and tables, literature summaries, transaction templates based on case studies from his real-life experience on the ground. This is so far the only book on FDI in China which covers both the theoretical perspectives as well as practical advices in investments. This book serves not only as a useful resource for students, teachers and policy makers who are interested in both theoretical and practical aspects of FDI in China, but also a valuable guidebook for business development executives, investment professionals and transaction lawyers who are involved in direct investment deals in China on a daily basis.

China is the largest recipient of foreign direct investment (FDI) among developing countries. This study compares China's FDI performance with a number of other Asian countries and focuses on the policy and institutional factors that lead to a large demand for FDI in China. The policy and institutional factors include import substitution, excess investment demand and features of China's FDI regulatory system. The study shows that there are costs associated with such a high demand for FDI, including overbidding for FDI and the associated loss of Chinese bargaining power, large import demand, and the structure of the FDI at variance with Chinese official policies. This study also briefly discusses the foreign economic policy implications of China's FDI absorption and suggests some future research possibilities.

China and India have both received a great amount of focus from the foreign investors. However, there are acute differences in the implementation of the economic reforms; China made rapid progress in the manufacture of high technology products, whilst India progressed in the development of high technology. This book explores the contrasts between China and India in attracting, utilizing and related issues and discusses the challenges faced by the foreign investors.