Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book provides comprehensive and updated accounts of recent policy changes and developments in several important aspects of the Chinese economy. It compares the experiences of capital inflow in China and Mexico to highlight the gains and risks of integration into the world capital market. The book also compares historical data for Mexico and China respectively in the areas of overall macroeconomic situations, balance of payments, composition of investment portfolios, and capital flight. It investigates the interaction between foreign direct investment and regional economic growth through the two-stage estimation approach. The book explores the implications of China's decision to join the World Trade Organization (WTO) from a long-term and strategic perspective. It provides a rare channel to understand the rationale behind Beijing's decision to participate in economic globalization through WTO membership.