ABSTRACT
This chapter presents a study of some important aspects of Chinese foreign investment policy, and begins with a discussion of the broad aims of the policy as enunciated in officially approved Chinese statements. It explores what the "opening up" to foreign investment has actually meant in practical policy terms. The chapter examines how certain convenient ambiguities in China's foreign investment laws leave room for flexibility to strengthen the bargaining position of state enterprises in negotiating high-priority projects with foreign partners. For the Chinese government, foreign investment policy was part of a larger strategy which began in the Deng era of seeking out financial support from a variety of foreign sources on the best available terms. Much of Chinese foreign investment law is more a signal of policy intentions than a guide to the rights and duties of each side. In the bargaining process, China has made much of its respect for intellectual property.
