China and Foreign Investors. The End of a Beautiful Friendship?

The promotion of FDI has been an important component of China's economic reform process and China has become one of the most important destinations of FDI. Although heavy-handed interventionism is nothing new in China, the direction of state-interventions seems to have shifted lately away from opening up to foreign investment towards a more careful and selective stance with a view to promoting the emergence of national champions. The objective of the present paper is to examine the evolution in the Chinese Government's approach to inward FDI, as well as a number of other economic policy decisions which may impact on foreign investors operating in China.
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