The dynamics of foreign direct investment in China:
An analysis of planning and development
Abstract
In the 1960s, Deng Xiaoping said his most iconic quote: “if a cat catches mice, it doesn't matter whether it is black or white.” The phrase was proclaimed in defense of increased productivity, even at the expense of the socialization of the economy. Later, this analogy was widely used to endorse the modernization reforms adopted in the late 1970s. In the 21st century, the People's Republic of China has risen as one of the main centers of the world economy. This result is attributed to the process of opening up and modernization, which promoted China's integration into the world economy. The role of the State in planning and implementing policies that sought to attract foreign direct investment (FDI) is central to this process. The central objective of the article is to present an analysis of FDI development in China based on planning and development, identifying different cycles according to the political context and Chinese development challenges.
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