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A Normative Model to Evaluate China’s FDI Regime

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Foreign Investment in Rapidly Growing Countries

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Abstract

The reform of the Chinese economy began after Mao Zedong’s death in 1976. Led by Deng Xiaoping, the Chinese government started slowly allowing impoverished localities to experiment with household farming. Chairman Deng’s reforms quickly led to the ‘open door’ policy of foreign trade in 1979. In the same year, ‘The Equity Joint Venture Law’ allowed the legal entry of FDI into the Mainland and thus provided the statutory basis for the establishment of joint ventures (JVs) in China. Shortly after, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) was established to develop China’s foreign economic relations and trade. The central government followed the reforms by allowing industrial firms to retain a modest share of their profits as an incentive to enliven state assets.

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Authors
  1. Ramin Cooper Maysami
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  2. Wayne Lim
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Editor information

Editors and Affiliations

  1. University of Western Sydney, New South Wales, Australia

    Harbhajan S. Kehal (Senior Lecturer in Economics) (Senior Lecturer in Economics)

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© 2005 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Maysami, R.C., Lim, W. (2005). A Normative Model to Evaluate China’s FDI Regime. In: Kehal, H.S. (eds) Foreign Investment in Rapidly Growing Countries. Palgrave Macmillan, London. https://doi.org/10.1057/9780230554887_4

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