This study records and evaluates the development so far of an enabling environment for FDI in China and suggests policy options designed to improve it further.

China has become one of the world's leading destinations for foreign direct investment (FDI), following the Chinese government's economic reforms and decision to open up foreign trade and investment opportunities. FDI has been a key factor in promoting rapid economic growth and technological progress, although there remains substantial potential for a greater inflow of long-term, high-technology, high-value-added FDI from OECD countries. This study reviews developments and suggests policy options designed to improve FDI inflows further. This will require structural reform aspects, including greater legal transparency and streamlined investment approval procedures, good corporate governance, effective competition policy and a sound financial system.

The 2004 Investment Policy Review of the Russian Federation evaluates the progress made since the publication of OECD's 2001 study on this topic.

China has become one of the world's leading destinations for foreign direct investment (FDI). However, while cross-border mergers and acquisitions (M&A) have become the dominant form of global FDI flows, they remain a relatively small part of FDI flows into China. Cross-border M&A can play an important part in the restructuring of state-owned industries, especially in China's old industrial heartland in the North East. The Chinese government has enacted legislation to open the economy to cross-border M&A but the regulatory framework could be more open and transparent. In reviewing developments since 2003, the Investment Policy review of China 2006 evaluates the progress made in developing an effective institutional framework for cross-border M&A in China, takes stock of remaining obstacles, and offers policy options to address them. This review is part of the OECD's ongoing co-operation with non-member economies around the world.