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

September 26, 2013

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"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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