Foreign direct investment
Foreign direct investment (FDI) has significantly impacted employment in China. The number of employees hired by foreign direct investment enterprises in the country's urban areas increased steadily from 1985 to 2005; between 2002 and 2005, the number of employees hired by FDI enterprises in urban China increased by 5.95 million. FDI is mainly driven by China's low cost of labor. A considerable number of foreign-invested enterprises are based in labor-intensive industries such as the garment industry, electronics manufacturing, and the food and beverage processing industry.