Seeking new growth hotspots in absorbing foreign direct investment

PEI Changhong (裴长洪)
The Institute of Finance and Trade Economics, Chinese Academy of Social Sciences

Abstract:
In recent years, China’s service industries have absorbed an increasing amount of foreign direct investment (FDI);
foreign investors have taken wholly foreign-owned enterprise (WFOE) as the most preferred vehicle of making
investment in China; free ports have become a major source of FDI inflows to China; China’s FDI inflows as a
percentage of global FDI inflows have been in decline. In the export-oriented or import-substitution manufacturing
industries, China still needs to vigorously absorb FDI in the future. In addition, China should continue opening its
infrastructure and social service industries. It is therefore imperative to further improve the institutional and policy
environment for foreign investment utilization.
Key words:
Foreign Direct Investment; Future trends; Chinese practices

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