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Why Is Foreign Direct Investment In China Declining?

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    I have seen a number of important issues that may underlay China's economy
    imbalance are discussed in many blogs and forums, and it is suggested that current account
    surpluses and FDI remain important contributors to the foreign exchange
    reserve accumulation. Using empirical methodology analysis, the
    relationships and interactions between FDI, REER and Gross Domestic
    Product (GDP) in China in the long-run is shown, which yield additional
    information about implications for the behaviors of REER and FDI in the
    Chinese economy.

    The Chinese government announced a series of measures
    to stave off domestic impacts of the global financial crisis and boost the
    confidence of foreign investors to help stabilize foreign investment growth. To counter the decline, the MOC said it would give
    its provincial branches more say on approving overseas projects invested by
    domestic enterprises. Yao said about 85 percent of these projects would be
    subject to the approval of provincial commerce authorities instead of the MOC.

    Hope this helps...
    0 0

    Sandra14 

    answered 8 months ago

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