ABSTRACT
Foreign firms and foreign investment have made a wide range of contributions to China and its development. Although the economic impact analysis of the previous chapter concludes that the investments, operations, and supply chains of foreign invested enterprises may account for as much as a third of China’s economy, this is only part of the story. Foreign companies have had numerous additional catalytic impacts and spillovers into China’s economy. They have developed supply and distribution chains that sell broadly within China and internationally. They have brought worldclass R&D and technology development to China, resulting in numerous spillovers. They have brought modern management education and training to China, which has improved management capabilities right across the board. They have brought regional and global management activities to China, which has enhanced management development in China and has made it easier for Chinese companies to access international networks. They have worked to improve the financial sector in China, among others.
