China is among the world’s top nations in the global economic power rankings. China’s rapid economic growth has propelled the country to become a global economic giant (Ayangbah & Sun, 2017). In 2016, China’s surprised the entire world when her gross domestic product (GDP) hit as high as CNY74.4 trillion down from a mere record of CNY 406. 26 billion in 1979. China has undergone a rapid economic transformation in a span of three decades, a record that may not be easily achievable. China’s strong economic journey has greatly been contributed by her foreign investment policies.
China has one of the best foreign investment policies in the world. Although there are restrictions that govern foreign investment in China, the government ensures both domestic investors and foreign investors in the country enjoy a peaceful business climate. The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) are the main authorizing bodies mandated with the approval of foreign investment in China. Thus, all foreign investors must comply with NDRC and MOFCOM regulations.
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Since early 2017, China has reduced foreign investment in the country in a bid to boost innovation and economic growth in the country. Export.gov (2017) maintains that foreign investment in China has been played a vital role in economic growth and transformation of the country.
As a global marketing manager for my Irish IT firm, I would not hesitate in urging the company’s management to proceed into the Chinese market. This would be the best opportunity when China’s President Xi Jinping is determined to create more opportunities for foreign players in the economy by lowering barriers and restrictions. Technology and Finance are two major sectors that foreign investment is encouraged. Certainly, since my company falls under one most encouraged investment sectors, it would be prudent to proceed with the investment plans in the Chinese market.
References
Ayangbah, S., & Sun, L. (2017). Comparative study of foreign investment laws: The case of China and Ghana. Cogent Social Sciences , 3 (1), 1355631.
Export.gov. (2017). China - 1-Openness to, & Restrictions Upon Foreign Investment. Retrieved from https://www.export.gov/article?id=China-1-Openness-to-Restrictions-Upon-Foreign-Investment
