ABSTRACT
This chapter describes the background on foreign direct investment and multinational corporations in China. It provides an overview of foreign direct investment in the world. The chapter follows by an introduction to some of the characteristics of foreign direct investment in Asia. It is a historical review of such investment over the past two decades 1979-1998. The chapter illuminates what is occurring now, especially with respect to recently emerging policy changes, and speculates on the future of foreign investment in China. The financial crisis also affects foreign direct investment (FDI) regulations. MNCs are normally more interested in longer-term profits from the production of goods and services, whereas portfolio investors are normally more interested in quick financial returns International production by multinational corporations (MNCs) has been continuously growing. Growing internationalization of assets has contributed most to 100 MNCs was 55 percent increase in the transnationality index.
