ArticlesVol. 1, No. 2, Fall 1987

Foreign Direct Investment in the People’s Republic of China: Progress, Problems and Proposals


This article is written from the point of view of foreign transna- tional corporations (TNCs) interested in making direct investments in the People’s Republic of China (PRC or China), and reviews the progress that they have made to date, identifies what are generally perceived to be the major problems encountered by TNCs in China and presents practical proposals for dealing with some of those problems. The authors do not attempt to speak for China. Yet we share with the Chinese authorities and those involved in investing in China the assumptions that foreign direct investment (FDI)2 is good for China and that is desirable to expand it.