Opportunities and risks of FDI in China Dissertation

Opportunities and risks of FDI in chinaware - Dissertation Example...........................11 Discussions....................................................15 Conclusions....16 Recommendations..17 Bibliography..19 Appendices.22 crochet Over the last twenty years or so, Foreign Direct Investment in mainland China has been successful. It started with a base of approximately nineteen million dollars in 1990 and by 1999 the germinate of FDI had risen to tether hundred billion dollars. China is the leading country among all developing countries in terms of FDI stock. Its FDI consists of Greenfield investment. Initially, the stock of FDI in China originated from Asia among other parts of the developing world. FDI has varying meanings when it comes to its application in different brotherly and political grounds. For instance, in china, the notion of FDI has cocksure and negatives impacts depending on geographical locations of individuals, cultural beliefs and area of operation (pri vate or public sector). Since 1980s, China has been grouped among the countries that gift been able to reap the benefits of FDI. For instance, in the past two decades or so, Chinas economic growth measure has been increasing as the economy tries to move from the hold economy to a market-based economy. This growth rate has been made possible by trade liberalization that has been current across the globe. Introduction China is a Middle East country that has under bypast a rapid economic growth rate in the recent past. In the past decade the economy has been experiencing a positive economic growth rate estimated at 12%. In conjunction with the economic growth rate, the political sympathies has decided to engage itself in numerous developmental activities for instance, infrastructure building, development of the financial sector, and technological advancement. The rate of growth has so far been stable and it is expected to remain the same in the foreseeable future. China has not b een left behind in terms of FDI and it is actually among the countries in the world that have managed to pull through pace with the changes in the global world. However, Foreign Direct Investment (FDI) is a concept and a phenomenon that has gone beyond economies boundaries to encompass socio-cultural and political aspects. According to Fiss and Hirsch (2005), FDI in Chinese context means, the emergence of capitalism, democratization, or globalisation is marked by discursive struggles over their sociable and cultural impacts, and the outcome of these struggles may facilitate or impede the transformations widespread acceptance p29. There are several research studies that have been conducted on FDI in china but very little have been done on the opportunities and risks see by FDI in the Chinese economy. The research activities have mainly focused on the stocks of FDI in oecumenical and have not actually done much in relation to how this is affected by the social and economic stabili ty in