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: 5. Local Chinese Market and Business Climate
The sheer size of China’s population makes it an attractive nation for investors to commit capital to higher-end industries like healthcare, information technology, engineering, and luxury goods. Furthermore, economic growth and FDI can start a "success domino effect." In essence, the more FDI a region attracts, the more it grows, which in turn stimulates more FDI, to create overall sustained growth. 6. 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.