Article Abstract:
Foreign direct investment is important in China, but the domestic private sector also has potential as an engine for growth. Some 5% of gross domestic product (GDP) was accounted for by foreign direct investment from 1994 to 1998. Foreign investors and not allowed in certain attractive sectors such as telecoms, and may have to export a great deal before being permitted to compete on the domestic market. Private Chinese companies have performed well, with a 19.5% average return on equity, according to a survey from Hong Kong City University.
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Article Abstract:
China expects its gross domestic product to grow at the rate of 10% annually through the 1990s, which would make China one of the premiere industrial countries of Asia. But state-owned companies may cause prices to increase faster than output, which would cause inflation and other problems.
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Article Abstract:
The economy of China grew by 12% in 1992, and which helped to attract $58 billion in foreign investment. Investors should be cautious, because the double-digit growth rate may result in high prices and inflation.
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