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FDI in China

Update Date:2015-9-22 8:28:08 Source:Tannet (Malaysia) Sdn Bhd Views:749

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According to the 2014 World Investment Report released by UNCTAD, in 2013 China was the second largest FDI recipient in the world after the United States. In 2014, it became number one. The country is also at the top of the 2014-2016 list of the economies most attractive to multinational companies. The absorption of FDI is part of the policy of opening China to the outside world. In 2014, FDI followed their upward trend and increased by 3% compared to 2013. According to the predictions, FDI outflows from China abroad should soon overtake FDI inflows into the country.

China represents an untapped market and has a considerable growth potential due to several reasons:

- It's the biggest internal market in the world with 1.3 billion potential customers;

- it's a rapidly growing market (minimum 7% growth per year); and

- the labor costs are low even if this situation is changing in certain areas;

- with the development of the Western provinces, China offers new opportunities, particularly in the Sichuan province.



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