By the early 21st century, the FDI (Foreign Direct Investment) sector had carved out a major niche in the Chinese economy and exerted a remarkable impact on the nationís economic growth, industrial restructuring and its degree of integration with the global economy. The major role of the FDI sector manifests itself in many aspects, such as serving as a source of funds, improving investment efficiency, boosting output, introducing advanced technology and research capacities, ameliorating the industrial structure, expanding exports, upgrading the export commodity mix, and promoting economic restructuring. All these are described and analyzed in great detail in this book.
The last few chapters of the book feature the authorís prognostications of the key areas where FDI is to be solicited and the salient features of what China will do in this respect. FDI will continue its massive flow into the Chinese manufacturing industry and play an active role in turning China into a global manufacturing centre for a number of industries. The FDI inflow in the service industry will surge in a sustained fashion, thereby raising its efficiency and improving the services offered. In the last section of the book the author presents her idea about the emphasis and trends of the Chinese government when adapting its policies governing foreign investment to an increasingly open economy, and ponders what administrative policies and measures will be taken in this regard.