ABSTRACT
FDI plays an increasingly significant role in the global economic system, especially for the emerging economies. During the three decades of ‘reform and opening-up’ policy implementation, China has become an attractive FDI destination because of its enormous labour supply and low labour cost, relatively stable political and economic environment, and pro-FDI policies. As a result, FDI inflows to China increased dramatically from US$0.9 billion in 1983 to US$74.8 billion in 2007. Since 1993, China has been the largest FDI recipient among the developing countries.
