By Feng Li
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34 Some of these books and reports can be very useful for people who know very little about China. However, many such publications are overly simplistic, fragmented, and superficial, and some can even be misleading, if not potentially harmful, to potential investors. For example, a report published by the prestigious Andersen Consulting and the Economist Intelligence Unit in 1995 found that about two thirds of all multinational companies they studied were profitable, and it took most of them only two years to make money after setting up.
10. 11. 12. 13. 14. 21 theless, the size of the Chinese economy is still over US$2000 billion. ', pp. 79-85. Wang, Qingxian and Rong Huang (1996) 'We Start from H e r e ' ^ o Men Cong Zhe Li Qi Bu), The People's Daily (Overseas edition), 7 March 1996, pp. 1 and 3. An important step in reforming the state owned enterprises in China was the 'optimisation of capital structure'. This programme was first tried out in 18 cities as pilots, which at the beginning of the 'ninth five year plan' (1996-2000) was extended to over 50 cities in China, see The People's Daily (Overseas edition), 10 August 1996, 'An important step in vitalising the state owned economy' (Gao Huo Guo You Jing Ji De Zhong Yao Yi Bu), p.
THE STRUCTURE OF THE BOOK There are nine chapters in this book. After the Introduction (Chapter 1), the next chapter (Chapter 2) will examine the investment attraction of China under the contemporary world economic climate, and highlight the key motivations of foreign investors in China: in other Introduction 19 words, why foreign investors want to put their money in China instead of somewhere else. Then, in Chapter 3, the main forms of FDI in China, and the evolution of China's open door policies for foreign investment (in particular the adjustments in related laws and regulations and their underlying causes) are systematically examined within the context of China's political and economic reform.