ABSTRACT
Attracting and utilizing foreign investment has become the key issue in China’s open-door policy since the early 1980s. Foreign direct investment (FDI) is one of the most important and effective ways for China to develop trading relationships. China has already taken the lead in the South-east Asian developing countries in absorbing FDI with an accumulated total FDI of over US$95 billion by the end of 1994.2 The role of FDI in China’s economic development and in China’s economic development strategies is of considerable importance and significance for foreigners with interests in China’s market: a trade mission3 with both money and goods in hand is more likely to achieve its goals than one with intentions only of selling to China.
