Assessing the factors that promote foreign direct investment in China

Abstract

The goal of this paper is assessing the factors that promote foreign direct investment in China. This paper will use historical data to present the development process of China’s inward flow of foreign direct investment. After that, this paper will discuss how China’s official policy about inward FDI from the reform and opening-up policy influence the level of inward FDI, explore how the regional difference in China influences the inward FDI, and investigate whether China’s domestic economic environment and multi-national factors between China and foreign countries are suitable for attracting inward FDI. Besides, based on the result of research, this thesis will try to give some suggestions on attracting FDI.