Foreign Direct Investment in China: Issues and Challenges

In 2014, China became the largest recipient of foreign direct investment (FDI) in the world with USD128 billion inflows, followed by Hong Kong and the United States. With the country’s acceptance of economic transformation, China had been experiencing a radical shift in the size and significance of the FDI inflows into the country. Policies encouraging foreign trade and investment allowed China to grow at an unprecedented rate, with the country taking advantage of its greater integration with the global economy and international competitiveness. With its strong presence in international trade, China continued to enjoy current account surplus since the late 1970s. ... .