ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book explains the location of foreign direct investment (FDI) within a subnational context, with reference to the Chinese experience during 1979 to 1993. It aims to answer what causes foreign investors to prefer some cities to others as possible locations for their investment. The book analysis the overall process of FDI involvement in China since 1979 within the context of China’s policy changes toward a more liberal investment environment. It provides not only some critical background information and an overview of the process, but also some inputs that are used later. The book describes the general location pattern, the spatial distribution of FDI, and its change over time. FDI and international portfolio investment are the dichotomous components in international capital flow. Portfolio investment is purely financial investment through the modality of the market.
