ABSTRACT
In China, the real meaning of the opening policy is bringing foreign capital into Chinese territory. Introducing foreign capital comprises borrowing from abroad, receiving direct investment, and "other" investment. This chapter presents findings of a study on sources of direct foreign investment by country and region in the years 1985, 1990, and 1995. In 1985 some US$2 billion was received, forty nine percent coming from Hong Kong and Macao followed by United States and Japan. In 1985, ninety percent went to the eastern region, central and western regions received about five percent each. In terms of economic zones, the South China economic zone received sixty percent, the Bohai Rim economic zone received sixteen percent, and the Yangtze economic zone received thirteen percent. According to the Third National Industrial Census, in 1995 the total number of foreign-invested industrial enterprises was 59,000, a mere 0.8 percent of national total of industrial enterprises.
