Selling China: Foreign Direct Investment During The Reform Era (cambridge Modern China Series)

In this book, Yasheng Huang makes a provocative claim: the large absorption of foreign direct investment (FDI) by China is a sign of some substantial weaknesses in the Chinese economy. The primary benefits associated with China's FDI inflows are concerned with the privatization functions supplied by foreign firms, venture capital provisions to credit-constrained private entrepreneurs, and promotion of interregional capital mobility. Huang argues that one should ask why domestic firms cannot supply the same functions. China's partial reforms, while successful in increasing the scope of the market, have so far failed to address many allocative inefficiencies in the Chinese economy. "In this book, Yasheng Huang makes a claim: the large absorption of foreign direct investment (FDI) by China is a sign of some substantial weaknesses in the Chinese economy. The primary benefits associated with China's FDI inflows are concerned with the privatization functions supplied by foreign firms, venture capital provisions to credit-constrained private entrepreneurs, and promotion of interregional capital mobility. Huang argues that one should ask why domestic firms cannot supply the same functions. China's partial reforms, while successful in increasing the scope of the market, have so far failed to address many allocative inefficiencies in the Chinese economy."--BOOK JACKET

This book about China's integration into the world economy proposes a radically different perspective. Most economists view China's large foreign direct investment (FDI) inflows as the result of China's economic success. This study views the same phenomenon as a function of the imperfections in the Chinese economic system. It uses economic theory to explain FDI to a greater extent than previous studies on the same topic. It also presents comparative FDI data of additional countries, making it more comprehensive than previous studies which focused only on China.

This book proposes a different perspective on China's integration in the world economy. Most economists view China's large foreign direct investment (FDI) inflows as a result of China's economic success. This book views the same phenomenon as a function of the imperfections in the Chinese economic system. Yasheng Luang proposes a radically different perspective on China's integration with the world economy. He argues that large FDI inflows are a result of imperfections in the Chinese economic system rather than a result of the country's economic successes In a New York Times article entitled, "Funny, I Moved to Beijing and Wound Up in Pleasantville," Elisabeth Rosenthal, Times reporter in China, provides a humorous account of a typical weekend outing in Beijing.

Examining China's foreign direct investment inflows as a function of the imperfections in their economy.