ABSTRACT
This chapter explains the growth of foreign direct investment (FDI) in China. Export and foreign direct investment have made a great contribution to China's economic growth and technological advances. The chapter examines the consequences of China's trade and investment policy. Some economists have expressed their concerns about China's over-reliance on foreign investment. After weighing the pros and cons, the Chinese government decided to accept the conditions of World Trade Organisation (WTO) membership, and was ready to honour its commitments. The chapter examines the issues of government procurement, agricultural trade and international investment. An analysis of the disagreements between China's Government Procurement Law and the Agreement on Government Procurement (GPA) may help people better understand China's position on this issue. As the Agricultural Agreement of the Uruguay Round took effect in 1995, developed countries had six years to complete tariff cuts, and domestic support and export subsidies by 2000.
