Abstract
There is little doubt that the phase-in FDI contributed significantly to Chinese economic development, and much and perhaps most of the growth of China’s exports can be attributed to foreign-invested enterprises and per capita income growth in those coastal regions of China where FDI is concentrated has been demonstrably higher than in other regions. FDI is fuelling much of the rapid economic leap of China, yet it is not well integrated into mainstream of Chinese economy and the significant inequity grow further, for the reason that these inflows of investment are, however, concentrated both by country of origin, industries and regions. The author concludes that the FDI policies are no longer producing optimal results, and there should be a caveat to the non-guided FDI since the FDI spillovers can not, in all probabilities, be easily disentangled from its economic cohesions.
Highlights
The financial crisis of 2008 led to a revaluation of the world power and the development benefits from a degree of openness to foreign direct investment (FDI)
Many anecdotal evidences suggest that the role of FDI in Chinese economy is not high relative to this role as in other Asian economies (Lemoine 2000 op. cit.)
One can not quibble that FDI has robustly benefited the coastal regions while most of the rest of China has benefited less and the disparity exists between the fast-growing, FDI-fueled coastal provinces and the sluggish interior provinces
Summary
The financial crisis of 2008 led to a revaluation of the world power and the development benefits from a degree of openness to FDI. The economy development of China dependent on the foreign investment rivets its attitude---to welcome FDI and espouse a new multinational economic order. The story of FDI in China is not quite as rosy as what has been outlined above, and it is not an entirely unalloyed benefit. This study is focused on controversies surrounding the effects of FDI in the proposed collaborative relationship with the developing host countries in stimulating the economies as in the ways of promoting market integration, diversifying market supplies, and exercising as strong backbones for the money injections of the economy appetites. Section Three sketches some reflections about some concrete actions to further the spread of FDI in a properly arranged business-led trigger
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