Journal of Northeast Asian Studies

, Volume 9, Issue 4, pp 36–52 | Cite as

Problems and profitability of direct foreign investiment in China: An analysis of the survey data

  • Keun Lee
  • Chung H. Lee
  • Won Bae Kim
Conference Papers


By analyzing a survey in the Tianjin area, this article investigates the problems and profitability of joint ventures in China, and draws some policy implications. The authors find that there are a number of systemic constraints on the profitability of joint ventures, such as input and foreign exchange shortages, rigid labor policies, conflicts between business partners, and uneasy relations with state authorities. The article concludes that unless the investment environment is improved, China will not succeed in the competition with other developing countries in attracting the foreign capital needed for its modernization.


Joint Venture Foreign Capital Special Economic Zone Northeast ASIAN Study Export Promotion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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  2. Lee, Keun, “Chinese Model of the Socialist Enterprise: An Assessment of Its Organization and Performance.”Journal of Comparative Economics 14 (September 1990): 384–400.CrossRefGoogle Scholar
  3. Shen, Xiaofang, “A Decade of Direct Foreign Investment in China,”Problems of Communism 39, 2 (1990): 61–74.Google Scholar
  4. UN, Center on Transnational Corporations,Foreign Direct Investment in the People's Republic of China. New York: UN Publication, 1988.Google Scholar

Copyright information

© Springer-Verlag 1991

Authors and Affiliations

  • Keun Lee
    • 1
  • Chung H. Lee
  • Won Bae Kim
    • 2
  1. 1.the Institute for Economic Development and Policy of the East-West CenterHonoluluUSA
  2. 2.the East-West Center Population InstituteHonoluluUSA

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