Preview

The Advantages and Disadvantages of China's Current Foreign Investment Environment

Better Essays
Open Document
Open Document
1640 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Advantages and Disadvantages of China's Current Foreign Investment Environment
The advantages and disadvantages of China's current foreign investment environment

Content

Introduction and Backgrounds 3 Advantage: Good economic environment 3 Advantage: Stable political environment 4 Advantage: Acceptable infrastructure 5 Advantage: Abundant labor 5 Disadvantage: The laws of the market economy system are not perfect 6 Disadvantage: Low government efficiency 7 Disadvantage: The low efficiency of the financial sector 7 Disadvantage: The investment environment and labor distribution has regional differences 8 Disadvantage: Resources and environmental constraints 9 Summary 9 Citation: 10

Introduction and Backgrounds Since the reform and opening up, China's utilization of foreign investment is developing constantly. Along with the continuous improvement of the investment environment, the scale of foreign investment into China has been continuing expanding, which making China became the world's second largest inflow of funds country. In the backdrop of China's own economic development, in 2010, China became the second largest economy in the world, with a 5878.6 billion dollars GDP at the same year.① Inside the country, foreign investments forming a large-scale foreign economy, and made important contribution to China’s economy and pushed it into the international economic system. I would like to talk about my own views about China's current foreign investment environment, and analyze its opportunities and challenges.
The quality of investment environment is directly related to the ability to attract high-quality foreign capital investment. Investment environment affected by many factors, and these factors work together, such as national macroeconomic policies, the basic management system of national government, the level of infrastructures and so on.
First, I’d like to analyze the advantage of China's current foreign investment environment, which directly related to the opportunity for China to attract

You May Also Find These Documents Helpful

  • Good Essays

    China has been experiencing a high rate of economic growth above 10% per annum. It uses foreign investment funds to finance export industries, enabling it to maintain…

    • 1151 Words
    • 4 Pages
    Good Essays
  • Good Essays

    When one both reads Catcher in the Rye and sees Rebel Without a Cause, he or she can't help but wonder if the writers, Nicholas Ray and J.D. Salinger, somehow knew each other, or if one writer copied the ideas of the other. Jim Stark and Holden Caulfield, the two main characters of the stories, have so much in common that if they ever met one another, they would immediately become friends. The main theme that applies to both works is teenage rebellion. Holden and Jim seem to get into trouble often, which affects many different aspects of their lives, including their friends, family, school, location, and self-image.…

    • 647 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In 1980, China adopted an ‘open door policy’ toward foreign trade and investment. This strategy was extremely beneficial for the Chinese economy as it started by setting up the Special Economic Zones in southern coastal provinces, to attract foreign trade and investment; it offered low…

    • 877 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Argos Entry in China

    • 599 Words
    • 3 Pages

    * Tseng & Zebregs., 2002, Foreign Direct Investment in China-Some Lessons for Other Countries [Internet] Available from <http://ideas.repec.org/p/imf/imfpdp/02-3.html> [Accessed on 4/4/11]…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    China is the world’s most rapidly growing economy with their growth rates averaging 10% in the past 30 years. In the past decades there has been a significant increase in international…

    • 2351 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    Foreign direct investment (hereafter referred to as FDI) has created significant impacts in China after the Opening-Reform in the late 1970s, China has been successful in attracting FDI, which has been played an crucial role in the economic development of China. China has now become the second largest foreign direct investment (FDI) beneficiary country in the world following the US. Annual FDI inflow was below $US100 in 1979, but exceeded $US580 billion in 2006, with an annual growth rate of close to 30%. (Fung et al. 2004). This trend is expected to continue in the foreseeable future, especially given the country’s entry into the WTO. Many advantages can be identified in FDI, including boost employment rate, calculate capitals and increase domestic competitive. On the other hand, there are also some drawbacks of FDI in China. This essay will start with a display of the advantages and disadvantages of investing in China, then describe benefits and drawbacks brought by FDI and finally provide several correspondence suggestions.…

    • 1633 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    Global Marketing

    • 5361 Words
    • 22 Pages

    Holton R.H., (1989). Foreign investment and joint ventures: an American perspective. In U.S.- China Economic Relations: Present and Future, Institute of East Asian Studies)…

    • 5361 Words
    • 22 Pages
    Powerful Essays
  • Powerful Essays

    Doing Business in China

    • 2716 Words
    • 11 Pages

    China is one of the fastest and strongest growing economies in the world today. This is why many foreign companies are expanding their businesses and setting up in China. One of the most important aspects that will determine whether you can invest in China is the legal environment. There are many different problems in the legal system in China that will affect foreigners setting up and investing there, China has set up a legal system to promote foreign investment; this system has been strengthened by a number of domestic legislations and bilateral and multilateral agreements.…

    • 2716 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    China Innovation

    • 6928 Words
    • 28 Pages

    The authors would like to thank Booz & Company’s John Jullens, Charles Wong, Olivier Pincon, Eric Chen, and Michelle Wang…

    • 6928 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Body Shop Expansion To China

    • 5412 Words
    • 17 Pages

    PWC., 2013. Doing Business and Investing in China. [pdf] Available at: http://www.pwc.es/es/publicaciones/economia/assets/doing-business-in-china.pdf [Accessed 18 Aug 2013]…

    • 5412 Words
    • 17 Pages
    Powerful Essays
  • Better Essays

    Doing Business in China

    • 2221 Words
    • 7 Pages

    Improved international relations, government reforms, an expanding economy and increased foreign investment make doing business in China a potentially lucrative affair.…

    • 2221 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Kurt Lewin

    • 3503 Words
    • 15 Pages

    It is no doubt that Greece triggered the European sovereign debt crisis. In 2001, Greece reached the requirements of the budget deficit rate. In the same year, Greece joined the euro zone. But in this process, however, the Greek paid a quiet huge cost. Specifically, in order to reduce its own foreign currency debt, Greek government assigned a currency swap agreement with Goldman Sachs. Through the currency swap agreements, Greek reduced its foreign currency debt to achieve a sufficient rate of fiscal deficit to join the euro zone. But viewed the agreement signed with Goldman Sachs, Greece must pay the higher rate of return than the market price for a long time in the future. Over time, the Greek deficit rate will obviously become stagnant state, which led to the formation of the sovereign debt crisis in 2009.( Chunyan Zhao, (2007))…

    • 3503 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    Chinas demand for Crosslinking Agent has grown at a fast pace in the past decade. In the next…

    • 1698 Words
    • 10 Pages
    Satisfactory Essays
  • Powerful Essays

    China and India

    • 3964 Words
    • 16 Pages

    China’s present investment level would be unviable only if either it led to falling profits, which is contradicted by the data, or its efficiency of investment from the point of view of GDP growth, that is the ratio of fixed investment to GDP growth rate. was abnormally high – in fact it is almost exactly the same as India’s and around half that of the US, i.e. China's efficiency of investment, from the point of view of GDP growth, is the same as India and almost twice that of the US.…

    • 3964 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Business management

    • 715 Words
    • 3 Pages

    1. With introduction of a new idea, firms can make abnormal profit over a short term period…

    • 715 Words
    • 3 Pages
    Good Essays