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U.S. Chamber of Commerce: China's Approval Process for Inbound Foreign Direct Investment

September 26, 2013


"China's approval process for inbound foreign direct investment drives many of the headline economic issues currently being discussed between China and its trading partners, as well as internally within China."

A central feature of government-to-government talks is the concern, often expressed by foreign companies, that aspects of China's inbound nivestment approval process impede their investment in China, extract valuable commercial concessions as a price for market entry, and favor domestic over foreign companies.

While some Chinese policy-makers believe these approval processes are helping China achieve its industrial policy and economic development goals, others believe that the tiem has come to rethink the state-directed development model China has relied on for the past 30 years, especially given slowing gross domestic product growth, declining inbound FDI, and lagging competitiveness of state-owned enterprises.

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