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2009•International Area Studies ReviewRequires access

A Study on the Changes of China's FDI Policies after WTO: Implications for Korean Firms

Yungchul Kwon, Wenhua Zhou

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Abstract

China has enacted many laws and regulations governing foreign direct investment (FDI) since its open-door policy was instituted in 1978. Such laws and rules have provided a basis for inward foreign investment. In 2002, China became the world's largest FDI recipient FDI has played an important role in contributing to the country's economic development and institutional reform. The regulatory environment for FDI has improved as a result of China's accession to the World Trade Organization (WTO) in 2001. This study analyzes the changes in China's FDI policy as a result of accession to the WTO and provides the strategic implications for Korean firms looking to invest in China.

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What this paper is about

China has enacted many laws and regulations governing foreign direct investment (FDI) since its open-door policy was instituted in 1978. Such laws and rules have provided a basis for inward foreign investment. In 2002, China became the world's largest FDI recipient FDI has played an important role in contributing to the country's economic development and institutional reform. The regulatory environment for FDI has improved as a result of China's accession to the World Trade Organization (WTO) in 2001. This study analyzes the changes in China's FDI policy as a result of accession to the WTO and provides the strategic implications for Korean firms looking to invest in China.

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Available abstract

China has enacted many laws and regulations governing foreign direct investment (FDI) since its open-door policy was instituted in 1978. Such laws and rules have provided a basis for inward foreign investment. In 2002, China became the world's largest FDI recipient FDI has played an important role in contributing to the country's economic development and institutional reform. The regulatory environment for FDI has improved as a result of China's accession to the World Trade Organization (WTO) in 2001. This study analyzes the changes in China's FDI policy as a result of accession to the WTO and provides the strategic implications for Korean firms looking to invest in China.

Key concepts: Foreign direct investment, China, Accession, International trade, International economics, Business, World trade, Investment (military)

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