OECD Investment Policy Reviews: China 2003
Subtitle: Progress and Reform Challenges
By: Organisation for Economic Co-operation and Development
Series: OECD investment policy reviews; OECD Investment Policy Reviews
Publisher: OECD Publishing
Published: 2003
Place of publication: Paris
Language: eng
Format: [electronic resource]:
Number of pages: 240
ISBN-13: 9789264101975
Subjects: Finance and Investment
Description: China has become one of the world's leading destinations for foreign direct investment (FDI) since the Chinese government opted to reform the economy and open it to foreign trade and investment. Inflows of FDI, which accelerated at the time of China's accession to the WTO in 2001, have been an important factor in promoting rapid economic growth and technological progress. However, there remains substantial potential for a greater inflow of long-term, high-technology, high-value-added FDI from OECD countries. This study records and evaluates the development so far of an enabling environment for FDI and suggests policy options designed to improve it further. Foreign investors were initially attracted to China by cheap land and labour, the promise of a large market and, to some extent, by fiscal incentives. To sustain and increase large-scale FDI inflows, it is now necessary to move towards a more strongly rules-based attraction strategy, based on structural elements which will include a sound legal system, transparent laws and regulations, streamlined investment approval procedures, good corporate governance, effective competition policy and a sound financial system.
Table of contents: title: Preface; title: Overview of Progress and Policy Challenges; title: The Role of FDI in China's Economic Development; title: The Regulatory Framework for FDI in China; title: The Legal System and FDI; title: The Evolving Competitive Environment for FDI; title: The Tax Treatment of FDI in China; title: Bilateral Investment Treaties; title: Annexes.