ABSTRACT
Since 1978, the Chinese Government has been implementing its opening-up policies. The Chinese economy has been developing rapidly and is becoming an integral part of the global economy. Between 1978 and 2006, China has attracted a total of US$700 billion of foreign direct investment (FDI), ranking first for 16 consecutive years among developing countries as a destination for FDI. The wise and active utilization of foreign investment has contributed to China’s economic development and has played an important role in shaping and improving the Chinese socialist market economy.1
