Before Crisis
Prior to the current crisis, China enjoyed a decade of double-digit average GDP growth, growing at 13% in 2007. Foreign direct investment into China rose by 23% in 2008, to $92.3 billion, according to Ministry of Commerce statistics, and American investment into China grew by more than 10% in 2008.
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According to the United Nations Conference on Trade and Development, mainland China was the world’s sixth largest recipient of foreign investment in 2007. The Chinese government is doing everything it can to support the economy's growth and is taking steps to modernize and further open its markets and relax regulations.
Most foreign investment in Chinese companies passes through foreign exchanges, with investors buying and selling shares of Chinese firms primarily in New York and Hong Kong.
Investing directly into China will become easier and safer as China continues to relax financial industry regulations and push for greater transparency in financial reporting.
Current Situation
China’s economy is heavily dependent on exports to developed markets, and the drop in global demand has had a significant effect on the Chinese economy. In 2008 GDP growth dropped to approximately 9%.
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