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My Understanding of the Relationship Between Using Foreign Business Investments and Protecting National Industries

  • Zhong Zhengyan
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    Using direct investments from abroad is an important component of China's opening up to the outside and is an effective way of using external resources for the purpose of speeding up China's economic construction. Since reform and openness, our country's work of utilizing foreign capital has scored enormous achievements. In recent years, along with the accelerating process of integration of the world economy and the increase in investments by transnational corporations, China's practice of utilizing foreign capital has come up against a new situation; new circumstances and new problems have arisen and new comments and views have also emerged in society with regard to the use of foreign capital. Some of the comments are highly critical of the use of foreign capital. Hence, a conscientious summing up of China's experience with direct foreign investment, an objective assessment of the position and effect of direct foreign investment in our country's construction of a socialist market economy, clarification of some muddled understanding in quarters concerned about the utilization of foreign capital, and, from there, a definition of the long-term strategy for China's use of foreign capital and the adjustment of relevant policies continue to be urgent tasks of real significance.

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    Article provided by M.E. Sharpe, Inc. in its journal Chinese Economy.

    Volume (Year): 30 (1997)
    Issue (Month): 3 (May)
    Pages: 7-53

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    Handle: RePEc:mes:chinec:v:30:y:1997:i:3:p:7-53
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