Chinese FDI legislation and related websites

Torn between the economic centralization of its communist past, the interventionist values characterizing its millennial political traditions and its reformist embrace of free trade principles, China is an interesting laboratory for studying FDI legislation. Things can change extremely quickly in this arena, particularly in the wake of the 2008 financial crisis and readers are therefore encouraged to consider relevant websites offering updated information on FDI developments in China (and specifically in its banking sector, a focus in Chapter 8). Two general points are worth bearing in mind:

The more strategically important the Chinese authorities consider a particular sector, the more determined they will be to restrict foreign shareholders' power. Conversely, in those sectors where foreign domination is deemed to pose minimal threat to national interests (and where MNEs possess competencies considered helpful to China's chosen modernisation trajectory); FDI regulations have tended to be more lenient. A distinction might also be made between ventures whose object is to sell goods within China and others that use the country as an export platform. In general, the authorities tend to adopt a more favourable view of the latter.

The general trend towards fewer restrictions on FDI in China is often resisted, especially when the main drivers behind liberalization in a particular sector represent foreign interests. It is worthwhile analysing Chinese FDI policy reversals in conjunction with discussions about the liberalization of trading in the national currency, the Yuan (see Chapter 13).

General Chinese FDI websites (all accessed April 2008) Ministry of Commerce of the People's Republic of China, Invest in China, available at www.fdi.gov.cn/. He, J. and Kuijs, L. (September 2007), Rebalancing China's Economy - Modeling a Package Policy, World Bank China Research Paper No. 7, available at www.worldbank.org.cn/. US-China Business Council (February 2007) Foreign investment in China, available at www.uschina.org/. Morgan, FT. O. (February (April 27, 2005), 2003) Insider China's dealing FDI smoothes the way, available at at www.guardian.co.uk/. Business merry-go-round, available http://www.fdimagazine.com/. Chinese Banking FDI Websites (all accessed April 2008) Chen, G. (28 January 2008), Citigroup and Central China Securities said planning joint banking venture, available at http://www.iht.com/. Chen, G. (7 December 2007), Credit Suisse in JV with China Founder Sec -Memo, available at http://www.reuters.com/. China Banking Regulatory Commission (January 25, 2007) Report on the Opening-up of the Chinese Banking Sector, available at www.cbrc.gov.cn/. KPMG (2007), Mainland China Banking Survey, available at www.kpmg.com.hk/.

Routledge, S. (17 May 2006). ABN Amro increases its stake in Chinese JV, available at www.banking-business-review.com/.