Sino-Foreign Joint Ventures

Abstract

FDI plays a major role in linking China’s national economy to the global economy. The World Investment Report (UN 1997) records that among developing countries China has been the recipient of the largest FDI inflow, amounting to some $57 billion in 1997. FDI has made a significant contribution to the Chinese economy by improving local production, management and marketing systems. This is achieved through a portfolio of inputs, which include capital, technology, management and marketing know-how. The success of China in attracting FDI lies in an investment climate characterised by growing markets, increasingly favourable regulatory frameworks and the possibility of establishing joint ventures (Beamish 1983).