Asie Visions - China and Foreign Investors. The End of a Beautiful Friendship? Asie.Visions 4, April 2008

The promotion of FDI has been an important component of China's economic reform process and China has become one of the most important destinations of FDI. Although heavy-handed interventionism is nothing new in China, the direction of state-interventions seems to have shifted lately away from opening up to foreign investment towards a more careful and selective stance with a view to promoting the emergence of national champions. The objective of the present paper is to examine the evolution in the Chinese Government's approach to inward FDI, as well as a number of other economic policy decisions which may impact on foreign investors operating in China.