China’s Inbound and Outbound FDI Goals
November 24, 2017
Foreign direct investment (FDI) in China has changed essentially as wages proceed to rise and the nation’s economy develops from a heavy manufacturing base to one drove by consumption and services. Foreign investors are adopting a warier strategy to investing in China than in years past, while Chinese outbound investors have been more bullish.
Normally, the government has paid attention. Following a slowdown in inbound FDI, and a huge increment in outbound FDI, the government in August discharged the Notice on Promotion of Foreign Investment Growth (“the Notice”) to ease restrictions on inbound FDI and the Administrative Measures for Outbound Investment by Enterprises to manage outbound FDI.
These initiatives fit into a bigger reform agenda intended to enhance foreign investment options, and they are as of now reshaping both inbound and outbound FDI. Accordingly, strategic foreign investors with an enthusiasm for China are finding that their opportunities are changing, while Chinese investors are finding new incentives to focus their outbound investment on particular initiatives.
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