There was also, traditionally, a deceptive gap between the merely contracted investment and what was actually realized. In 1993 the ratio stood at 114.4 to 27. By 1999, it had reached a healthy balance, at 41.2 to 40.3. The positive contribution of foreign investment is not in doubt. In the days of self-sufficiency, China exported hog bristles.
Imports are, at present, limited by trade barriers.
Foreign-funded enterprises account for some 50 percent of China's total exports and contribute 14 percent of its tax revenues. Their 14 to 18 percent of capital formation is on par with UK or Holland. Intangibles associated with their operations include the clear gains in efficiency and productivity over and above a command-driven economy. As the accelerated pace of globalization and technology creates a new dynamic, many companies are looking for regional opportunities that could make a positive difference to their balance sheets. China's steady 8 percent growth rate, forecast to be sustained over the next two years at least, is the factor revitalizing FDI in-flows.