Essays on Chinese Economy Case Study

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The paper "Chinese Economy" is a good example of a Business case study. The report analyses the international business environment and critically evaluates the risks and opportunities. The report has chosen China as the preferred country for investing. Since the Chinese open-door policy, the country has experienced a surge in FDI.   China's success in the global economy has been based on an increase in its foreign direct investments (FDI). The country's open-door policy saw it increase its foreign direct investment by a large margin. In 1990, Chinese foreign direct investment was at $19 billion and rose to $300 by 1999.

The country has also been able to increase its overseas investment during the same period. The country had engaged in market liberalization and encouraging investments during the 1980s and 1990s. The years between 1991 and 2001 had seen the country experience unstable development. The last phase between 2002 and the present have seen China having rapid and steady development. This is a period in which the government adopted the open-door policy (Jun & Meijun, 2005). There are various reasons for investing in China.

China has invested heavily in economic structure change presenting a good investment opportunity (Riedel, Jing & Jian, 2007). The country has Free Trade Zones which offer the investors exemption of tariff and ease of currency conversion. The country's economic growth has the capability to top the world. The country also enjoys a good transport network, which enables ease of transport and can help the business in export and import logistics (Pike, 2009). The Chinese market is large which gives the investor a chance to explore a new market there is also a large workforce in the country (Ding & John, 2008b).

The report will critically discuss issues on decision making and international investment. This will be achieved through a case study analysis of the attractiveness of investing in china. The report will analyze Chinese political economy analysis through its political system, economic system, the legal system, and finally, gives recommendation and conclusion.


Allen, F., Jun, Q. & Meijun, Q. (2005). Law, finance and economic growth in China, Journal of Financial Economics, 77: 57-116.

Bosshart. S, Thomas, L. & Emma, W. (2010). Past Lessons for China’s newjoint ventures, McKinsey Quarterly, December.

Buckley, P., Adam, R. C., Hui, T. Liu, X. & Hinrich, V. (2008). Historic and Emergent Trends in Chinese Outward Direct Investment, Management International Review, 48(6), pp. 715- 748.

Cull, R. & Lixin C. X. (2005). Institutions, ownership, and finance: the determinants of profit reinvestment among Chinese firms, Journal of Financial Economics , 77:117-46.

Ding, S. & John, K. (2008b). Why has China grown so fast? The role of structural change, University of Oxford, Department of Economics, Discussion Paper No. 415.

Li, H. & Li-An, Z. (2005). Political turnover and economic performance: the incentive role of personnel control in China, Journal of Public Economics, 89(10): 1743-62.

Pike, J. (2009). People’s Republic of China Infrastructure. Retrieved August 29, 2014, From

Redding, G. & Michael A. W. (2007). The Future of Chinese Capitalism, Oxford University Press, Oxford.

Riedel, J., Jing J. & Jian G. (2007). How China Grows. Investment, Financeand Reform, Princeton, New Jersey: Princeton University Press.

Wurgler, J. (2000). Financial markets and the allocation of capital, Journal of Financial Economics, 58(1), 187-214.

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