Building Blocks for National Institutions
This chapter provides an overview of the Chinese national institutions that have brought significant economic liberalization and rapid change to the market environment. It concentrates on those economic reforms that have lessened the costs of the Chinese government’s trade policies and diminished regulation barriers for foreign investments. This chapter also highlights how the proper management of foreign investments may enhance business opportunities for foreign firms which operate overseas. The reforms, together with the appropriate establishment of national financing, political institutions and taxation, aims to provide a clear guidance for foreign firms about how to invest and conduct production activities, and to enable most foreign firms operating in China to manage their investments more effectively. This study offers an essential understanding of a foreign firm’s investment activities through the use of macro-institution analysis.
KeywordsCorporate Governance Foreign Investment Chinese Government Foreign Firm Strategic Alliance
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