begin in the late 1978,Chinese leadership decided to move the economic

8:07 99% Foreign Direct Investment in Chins Beginning in the late 1978, Cina's leadership decided to move the economy a centrally planned socialist system to the n ene that was-market drim Th as of sustained high economic growth rates of roun 10% annually. This foreign investment increased to an owth attracted substantial foreign investment. Startingfrom a annual average rate of $2.7 billion betwn 1 then sped to $40blion annualy in the 1990,- aking Onthe recipient of FOI inflows in the world after the United States The growth h nward investments into China hitting a record $128 ition in 2014 (w bilion going into Hong Kong). Over the past 20 years, this infhlow has establishment of more than 300,000 foreign-funded enterpies in China The total n Mainland China grew from aimost nothing in 1978 to $1.1 trilion in 3014ntt has coninued, with trillion of FDI stock was in Hong Kong. The reasons for this investment are faily obvious. With a population of moe people, China represents the words largest market intrealy difficult to serve this market via exports, SO IFO was required into the country's huge potential. China joined the world Trade result, average tariff rates on imports have fallen from iSA % to reducing the tariff became a motive for investment in China above the average of 3.5 % found in many de..ed nations) many firms believe that doing business in China requires a substal country to build GUANDO, the crucial relationship networks. Furthermore, a relatively inexpensive labour and tax incentives, particularly for themselves in special economic zones, makes China an Asian or world markets with exports (although rising labour cost in China ae this less important). id waned to uo Organiation in 200 As lalthough B, tiffa combination erteptes attractive base from whih now making Less obvious, at least to begin with, was how difficult it would be for foreign frms to d business in China. Chian may have a huge population, but despite decades of apid growt is still relatively poor. The lack of purchasing power translates into a relativelyt market for many western consumer goods outside affluent urban areas such a Shg Other problems include a highly regulated environment, which can make i prolemat conduct business transactions, and shifting tax and regulatory regimes. Then thee problems with local joint venture partners that are inexperienced, opportuniat or operate according to different goals. One US manager explained thut whe he lald of people to reduce costs, his Chinese partner hired them all back the nest day Whe inquired why they had been hired back, the Chinese partner, who was govenm explained that as an agency of the government, it had an "oblgition to To continue to attract foreign investment in late 2000, the Chinese goet committed itself to invest more than $800 billion in infrastructures projctov Further commitments were made in the late 2000s. This investment nation's poor highway system. The government has been pursuing has improved th 8:07 99% Foreign Direct Investment in Chins Beginning in the late 1978, Cina's leadership decided to move the economy a centrally planned socialist system to the n ene that was-market drim Th as of sustained high economic growth rates of roun 10% annually. This foreign investment increased to an owth attracted substantial foreign investment. Startingfrom a annual average rate of $2.7 billion betwn 1 then sped to $40blion annualy in the 1990,- aking Onthe recipient of FOI inflows in the world after the United States The growth h nward investments into China hitting a record $128 ition in 2014 (w bilion going into Hong Kong). Over the past 20 years, this infhlow has establishment of more than 300,000 foreign-funded enterpies in China The total n Mainland China grew from aimost nothing in 1978 to $1.1 trilion in 3014ntt has coninued, with trillion of FDI stock was in Hong Kong. The reasons for this investment are faily obvious. With a population of moe people, China represents the words largest market intrealy difficult to serve this market via exports, SO IFO was required into the country's huge potential. China joined the world Trade result, average tariff rates on imports have fallen from iSA % to reducing the tariff became a motive for investment in China above the average of 3.5 % found in many de..ed nations) many firms believe that doing business in China requires a substal country to build GUANDO, the crucial relationship networks. Furthermore, a relatively inexpensive labour and tax incentives, particularly for themselves in special economic zones, makes China an Asian or world markets with exports (although rising labour cost in China ae this less important). id waned to uo Organiation in 200 As lalthough B, tiffa combination erteptes attractive base from whih now making Less obvious, at least to begin with, was how difficult it would be for foreign frms to d business in China. Chian may have a huge population, but despite decades of apid growt is still relatively poor. The lack of purchasing power translates into a relativelyt market for many western consumer goods outside affluent urban areas such a Shg Other problems include a highly regulated environment, which can make i prolemat conduct business transactions, and shifting tax and regulatory regimes. Then thee problems with local joint venture partners that are inexperienced, opportuniat or operate according to different goals. One US manager explained thut whe he lald of people to reduce costs, his Chinese partner hired them all back the nest day Whe inquired why they had been hired back, the Chinese partner, who was govenm explained that as an agency of the government, it had an "oblgition to To continue to attract foreign investment in late 2000, the Chinese goet committed itself to invest more than $800 billion in infrastructures projctov Further commitments were made in the late 2000s. This investment nation's poor highway system. The government has been pursuing has improved th