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A Study on the Changes of China's FDI Policies after WTO: Implications for Korean Firms

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  • Yungchul Kwon
  • Wenhua Zhou

Abstract

China has enacted many laws and regulations governing foreign direct investment (FDI) since its open-door policy was instituted in 1978. Such laws and rules have provided a basis for inward foreign investment. In 2002, China became the world's largest FDI recipient FDI has played an important role in contributing to the country's economic development and institutional reform. The regulatory environment for FDI has improved as a result of China's accession to the World Trade Organization (WTO) in 2001. This study analyzes the changes in China's FDI policy as a result of accession to the WTO and provides the strategic implications for Korean firms looking to invest in China.

Suggested Citation

  • Yungchul Kwon & Wenhua Zhou, 2009. "A Study on the Changes of China's FDI Policies after WTO: Implications for Korean Firms," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 12(3), pages 121-138, December.
    • Handle: RePEc:sae:intare:v:12:y:2009:i:3:p:121-138
    DOI: 10.1177/223386590901200307
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    References listed on IDEAS

    as
    1. Zhang , Kevin Honglin, 2001. "What Explains the Boom of Foreign Direct Investment in China?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 54(2), pages 251-274.
    2. Zhang, Kevin Honglin & Markusen, James R., 1999. "Vertical multinationals and host-country characteristics," Journal of Development Economics, Elsevier, vol. 59(2), pages 233-252, August.
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    Keywords

    China; FDI Policy; WTO; Korean Firms;
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