Title: 6 Factors Driving Investment in China
Headings: 6 Factors Driving Investment in China
6 Factors Driving Investment in China
Key Takeaways
1. Capital Availability
2. Competitiveness
3. Regulatory Environment
4. Stability
5. Local Chinese Market and Business Climate
6. Openness to Regional and International Trade
The Bottom Line

Content: Openness to Regional and International Trade
FDI tends to find its way to nations that can sell goods to both local and foreign consumers. Trade barriers such as tariffs discourage investors, who realize that artificially inflated prices will depress demand abroad. Furthermore, such actions can prompt retaliatory tariffs from the U.S. on Chinese products, or trigger an outright ban on certain goods. Export-friendly policies like regional and international free trade agreements encourage FDI in China, especially for enterprises with substantial market share outside the local Chinese market. The Bottom Line
For a nation like China, foreign direct investment is crucial in spurring development and sustaining the country's economy as a competitive one in the global marketplace. FDI has helped China's economy grow significantly since it joined the World Trade Organization in 2001, becoming the second-largest economy in the world. FDI will continue to play an important role in China's economy if the right factors are in place.