Foreign Direct Investment in China

Benefits and Costs of Investing in China

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[Date] Benefits

In terms of economic performance , China has been performing impressively compared to its neighbouring countries in Asia and can compete at par with top developed countries like United States and United Kingdom in terms of volume of trade and sources of competitive advantages Likewise , due to its large population sixe and high disposable income of every Chinese household due to its impressive economic development for the past years , China offers great potential market

to many multinational companies seeking for large number of customers . This will provide multinational companies high sales and profit from operating in China

Alongside with the influx of foreign direct investment in China Chinese share of trade on their GDP continuous to increase every year as multinational firms increases the international trading transactions of China to the rest of the world . Furthermore , due to China 's large population , it has been able to offer cheaper laborers and large potential market which are both attractive to foreign investors leading to the improvement of their foreign direct investments for the past years since the late 1990 's . Without this component , it is impossible for China to attain its present state and achievements

Since 1999 , the GDP growth rate of China has been performing impressively as foreign direct investments stabilized major economic indicators , specifically the trade balance and domestic consumption which are vital in determining the overall performance of a given economy . This only suggests...