Foreign Investment in China

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Foreign investment is the acquisition by residents of a country of assets abroad. There are two types of foreign investment, known as foreign direct investment (FDI) and foreign indirect investment (FII). By definition, FDI is defined as the acquisition by residents of a country of real assets abroad which includes acquiring of land, constructing buildings, mines or machinery, or buying existing foreign businesses. On the other hand, FII or portfolio investment is the acquisition of …

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…Trade Organization (WTO) on December 2001. However, the best is yet to come as China is getting more and more active in the global economy. In year 2000, capital inflows for FDI are valued at US$ 40.7 billion and FII of US$ 8 billion, while FDI and FII outflows totaled of US$22 billion and US$3 billion respectively. These values have been increasing from previous years and are expected to keep on rising towards the future of China's prosperous economy.