China Foreign Direct Investment
China has principal attractions like low-cost labor and an enormous domestic market of more than 1.2 billion consumers. The investment climate has been opened up gradually. In the 1980s, foreigners were restricted to export-oriented joint ventures with Chinese firms. In the early 1990s, they were allowed to manufacture goods for sale in the domestic Chinese market; and by the mid-1990s; the establishment of wholly foreign-owned enterprises was permitted. China’s accession to the WTO forces the government to open up the services sector.